Thursday, September 10, 2015
Elect Jeb Bush To Get Ronald Reagan 111
Jeb Bush hired two conservative economists to create his tax plan. To the surprise of no one they followed the basic idea created by Ronald Reagan's conservative economists, and which his brother revived when he was president. The basis idea is simple. Given everyone a tax cut but give most of the cuts to the richest Americans. Of course, that will reduce government tax revenue in the short term but there are two ways to deal with that problem. The preferred way is to argue that the tax cuts will increase the growth rate and expand the tax base. Jeb Bush believes that his plan will cause the economy to grow at a 4% rate. Few economists, who are not paid to be hired guns for the super rich, believe that rate can be achieved through tax cuts. The other way to pay for the tax cuts is to reduce entitlement expenditures. Americans who hate providing benefits to the "wrong kind of people" would support that strategy. It would also appeal to those desire a smaller government. It seems like a fail proof strategy for rewarding those who fund the GOP's political campaigns. Details of the plan are provided in the article but the basic idea is quite simple.