WE WILL NOT HAVE PROSPERITY WHEN POLITICIANS DOMINATE THE ECONOMY
June 18, 2009
Economic freedom is necessary to building a productive America with the best jobs and greatest prosperity in the world. We will not have new jobs when bureaucrats micromanage companies. We will not have prosperity when politicians dominate the economy, says Newt Gingrich, former Speaker of the House.
So how do we get back to economic growth? High taxes kill jobs and growth. Low taxes encourage jobs and growth. Instead of spending $787 billion to reward Democratic interest groups, an effective economic stimulus would get the money to the people that work and the businesses that hire them in the form of lower taxes, says Gingrich.
- If we had a two-year, 50 percent reduction in the Social Security and Medicare tax for both the employee and the employer, we would have an extraordinary explosion of small business.
- If we want to compete with China for jobs, we should match the Chinese on capital gains -- their rate is zero.
- If we want to compete for profitable businesses creating good jobs, we should adopt the Irish tax rate of 12.5 percent for corporations.
- If we want to build up capital for investments permanently, we should abolish the death tax.
Beyond tax policy, for American jobs and prosperity we need an American energy policy, says Gingrich.
We need a policy that emphasizes the energy we have in America -- from coal and natural gas to wind and solar -- and recognizes that the problem isn't a lack of resources or innovation. The problem is government. America is the Saudi Arabia of coal and the global leader in technical and scientific innovation. But both these advantages are weakened by government policies that favor imports over American energy.
Source: Newt Gingrich, "'Don't Tell Me It Can't Be Done,'" Human Events, June 17, 2009.
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