The Democrats’ breakout budget, not Paul Ryan’s restrained one, is what’s extremist and radical.
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Ryan’s proposed tax reform also includes revenue-neutral corporate tax reform, proposing to reduce the top federal corporate income tax rate from 35% to 25%, in return for closing corporate tax loopholes. America currently suffers the highest corporate tax rates in the world at near 40%, counting state corporate tax rates on average, except for the socialist one party state of Cameroon. Even the Communist Chinese feature a 25% corporate rate. The average in the predominantly socialist Europe Union is below 25%. Formerly Communist Russia now enjoys lower corporate rates as well.
But today’s Democrat party is rigidly in the same camp as the Socialist Party of Cameroon, competing for the highest corporate tax rates in the entire world. The Senate Democrat budget proposes no tax reform to reduce rates, calling instead for still higher taxes on American businesses and employers, which are already uncompetitive in today’s global economy with the current imposed tax rates. That budget also does not propose any new tax cut for the middle class.
The Camp-Ryan Republican tax reform bill will greatly aid in restoring long overdue, traditional American growth and prosperity, through lower tax rates providing incentives for increased productive activity. That increased economic growth will substantially reduce the deficit as well. CBO reports that every increase in economic growth of 0.1% reduces the deficit by $314 billion over the next 10 years. Increasing the weak, real, economic growth of around 2% over the last 2 years to a more traditional rate of 4% during economic recovery from a recent recession would consequently further reduce deficits by over $3 trillion over the next 10 years.
A further boost to booming economic growth would result from fundamental reform of monetary policy and the Fed, now championed by Joint Economic Committee Chairman Kevin Brady (R-TX) and Rep. Ted Poe (R-TX). Their proposed reforms would tie down Fed monetary policy to the value of long-term stable commodities such as gold. That would promote economic growth by assuring investors that the return on their investments will not be depreciated by inflation or a declining dollar. That along with regulatory relief would complete the package for booming economic growth as enjoyed under President Reagan.
Republicans and conservatives should use the Senate Democrat budget as the defining statement of Democrat party policy, to rout the Democrats in 2014, the same way they were routed in 2010.