Mitt Romney’s tax plan is a winner, and, lacking a serious rebuttal, President Obama settles for fabricating charges.
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Business investment, which had declined for nine straight quarters, reversed and increased 6.7 percent per quarter. That is where the jobs came from. Manufacturing output soared to its highest level in 20 years. The stock market revived, creating almost $7 trillion in new shareholder wealth. From 2003 to 2007, the S&P 500 almost doubled. Capital gains tax revenues doubled by 2005, despite Bush’s 25 percent rate cut!
After the Reagan tax cuts were fully implemented, the economy took off on a 25-year economic boom (from 1982 to 2007). It was interrupted by two short, shallow recessions, but it is widely recognized in the economic literature, and by the National Bureau of Economic Research, as one long boom. During the first seven years alone, the economy grew by almost one-third, or the equivalent of adding an entire West Germany, the third largest economy in the world at the time, to the U.S.
Supply-side godfather Art Laffer and Wall Street Journal editorial board member Stephen Moore summarize in their 2008 book, The End of Prosperity: “We call this period, 1982-2007, the twenty-five year boom — the greatest period of wealth creation in the history of the planet.” Economist Henry Nau, writing in the Wall Street Journal on January 26, added that “the U.S. grew by more than 3 percent per year [in real terms] from 1980 to 2007, and created more than 50 million new jobs, massively expanding a middle class of working women, African-Americans and legal as well as illegal immigrants. Per capita income increased by 65 percent, and household income went up substantially in all income categories.”
Similarly, Steve Forbes wrote in Forbes magazine in 2008:
Between the early 1980s and 2007 we lived in an economic Golden Age. Never before have so many people advanced so far economically in so short a period of time as they have during the last 25 years…. The U.S. kicked off this long boom with the economic reforms of Ronald Reagan, particularly his enormous income tax cuts…. Between year-end 2002 and year-end 2007 U.S. growth exceeded the entire size of China’s economy.
These tax policies enjoy a history of bipartisan success. JFK proposed legislation to reduce income tax rates across the board by 30 percent, explaining:
It is a paradoxical truth that tax rates are too high today, and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the tax rates….[A]n economy constrained by high tax rates will never produce enough revenue to balance the budget, just as it will never create enough jobs or enough profits.
Kennedy’s proposed tax cuts were adopted in 1964, and pulled the top rate from 91 percent down to 70 percent, while reducing the lower rates. The next year, economic growth soared by 50 percent, and income tax revenues increased by 41 percent! By 1966, unemployment had fallen to its lowest peacetime level in almost 40 years. U.S. News and World Report exclaimed: “The unusual budget spectacle of sharply rising revenues following the biggest tax cut in history is beginning to astonish even those who pushed hardest for tax cuts in the first place.” Arthur Okun, the administration’s chief economic advisor, estimated that the tax cuts expanded the economy in just two years by 10 percent above where it would have been.
But as a career Marxist street agitator, President Obama has no idea what works and what doesn’t. That is why, after four years as president, he still has America in the ditch. And if the American people are stupid enough to give him another four years, he will have America completely under water.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?