Needed: Policies to Revive the Economy
August 10, 2001
Growth advocates are urging President Bush to act quickly to adopt a robust economic recovery plan -- pushing all other legislative priorities off the table. They see virtually every bill now speeding through Congress (the patients' bill of rights, prescription drug benefit, the farm bill, etc.) as a growth depressant.
Here are the major initiatives they are imploring Bush to pursue:
- To raise revenues, spur capital investment and raise stock values, immediately reduce the capital gains tax to 15 percent.
- Repeal the death tax immediately -- rather than let its demise drag on until 2011, only to be resurrected in 2012.
- Fast forward the income tax rate cuts so they take effect in 2002 -- while also reducing the top income tax rate to 34 percent from 40 percent.
- Pressure the Federal Reserve to inject more liquidity into the market.
It would also help, the growth-oriented believe, to fast-track trade legislation, drop the Microsoft case, and have the President veto appropriations bills that come in above a 4 percent spending increase target for 2001-2002.
They argue that it makes no sense to allow federal spending to grow by 7 percent or 8 percent this year -- since inflation is running below 2 percent.
Source: Stephen Moore (Club for Growth), "Bush Needs a Pro-Growth Agenda -- ASAP," Wall Street Journal, August 10, 2001.
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