January 31, 2012

Laffer: ‘Gingrich’s Tax Plan Beats Romney’s’

Filed under: Economy,Taxes & Government — Tom @ 7:10 am

In the Wall Street Journal today (bolds are mine):

Gingrich’s Tax Plan Beats Romney’s

… the key is a good tax plan and the ability to implement it.

Mr. Gingrich has a significantly better plan than does Mr. Romney, and he has twice before been instrumental in implementing a successful tax plan on a national level—once when he served in Congress as a Reagan supporter in the 1980s and again when he was President Clinton’s partner as speaker of the House of Representatives in the 1990s. During both of these periods the economy prospered incredibly—in good part because of Mr. Gingrich.

Jobs and wealth are created by those who are taxed, not by those who do the taxing. Government, by its very nature, doesn’t create resources but redistributes resources. To minimize the damages taxes cause the economy, the best way for government to raise revenue is a broad-based, low-rate flat tax that provides people and businesses with the fewest incentives to avoid or otherwise not report taxable income, and the least number of places where they can escape taxation. On these counts it doesn’t get any better than Mr. Gingrich’s optional 15% flat tax for individuals and his 12.5% flat tax for business. Each of these taxes has been tried and tested and found to be enormously successful.

Mr. Romney’s tax proposals—including eliminating the death tax, reducing the corporate tax rate to 25%, and extending the current tax rates on personal income, interest, dividends and capital gains—would be an improvement over those of President Obama, but they don’t have the boldness or internal integrity of Mr. Gingrich’s personal and business flat taxes.

Not surprising. A shortage of boldness (with the exception of brazenly lying about his opponents, and having others do it on his behalf) and a lack integrity signature features of Mitt Romney’s political life going all the way back to his time as Massachusetts governor.

Continuing with Mr. Laffer:

… A person who makes 10 times as much as another person should pay 10 times more in taxes. It is also patently obvious that it is unfair to tax some people’s income twice, three times or more after it has been earned, as is the case with the death tax.

The current administration’s notion of fairness—taxing high-income earners at high rates and not taxing other income earners at all—is totally unfair. It is also anathema to prosperity and ultimately leads to the situation we have in our nation today.

In 2012, those least capable of navigating complex government-created economic environments find themselves in their worst economic circumstances in generations.

Mr. Gingrich’s flat tax proposals—along with his proposed balanced budget amendment—would put a quick stop to overspending and return America to fiscal soundness. No other candidate comes close to doing this.

Florida voters would be wise to decide in favor of the guy who has an economic plan Art Laffer can support, or at a minimum to stay away from the guy with a boring 59-point plan.

Share

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.