Taxes, regulations hold back US

Irespectfully disagree with the Sunday letter “Supply-side economics do not work” from Corinne Lyman. There is no question that if we raise tax rates on businesses they will invest, produce and hire less. Cutting taxes, reducing burdensome regulation and enacting other pro-growth policies unleashes employers’ abilities to grow, expand and hire. Historical evidence confirms this to be true.

When President Ronald Reagan slashed tax rates and eased burdensome regulations, the economy flourished. After the first tax rate hike of the 1990s, the nation slumped into recession. The effect of President Bill Clinton’s subsequent tax hike was only tempered by the technology boom. The economy really took off when the Republican Congress enacted welfare reform to encourage work, spending reform to balance the budget, and lower capital gains taxes to boost investment.

Even President Barack Obama recognized the economic value of low taxes declaring, “The last thing you want to do is raise taxes in the middle of a recession.” He maintained the tax cuts of his predecessor through his first term and supported making the majority of them permanent. Unfortunately, he constrained our economic potential by raising taxes on small businesses and investment by hiking the top individual and capital gains tax rates.

Combined with the crushing regulatory burden he imposed, there are fewer jobcreating business startups; investment declined last year; and the economy underperforms. Without a doubt, the current weak recovery is an authentic demonstration of how badly tax-and-spend policy slows economic growth. Cutting tax rates and burdensome regulations does work, and America needs both to return to prosperity.

Rep. Pat Tiberi 12th Congressional District Genoa Township Chairman U.S. Joint Economic Committee