Gop un­rest great good will fol­low

Forbes - - Inside Scoop - BY STEVE FORBES, EDI­TOR-IN-CHIEF

The dis­ar­ray among Repub­li­cans in the House of Rep­re­sen­ta­tives and the re­al­ity-tv-show, cir­cus­like at­mos­phere sur­round­ing the multi-can­di­date GOP pres­i­den­tial feld ob­scure two heart­en­ing de­vel­op­ments that bode well for the coun­try af­ter the 2016 elec­tions.

First, al­most ev­ery Re­pub­li­can White House as­pi­rant has put forth a se­ri­ous plan for dras­ti­cally chang­ing the fed­eral in­come tax code in ways that would be an enor­mous stim­u­lant for eco­nomic growth. Af­ter seven lean Obama years of eco­nomic stag­na­tion this would be rap­tur­ously wel­come.

Former sen­a­tor Rick San­to­rum and Sen­a­tor Rand Paul have both un­veiled se­ri­ous fat-tax pro­pos­als. While not as stream­lined as I would like, they’re lightyears bet­ter than what we have now. Each plan would junk the ex­ist­ing code and start over. Their sim­plic­ity would re­move a ma­jor source of lob­by­ing and po­lit­i­cal cor­rup­tion, and their low sin­gle rates would give a pow­er­ful boost to in­vest­ment.

Dr. Ben Car­son has spo­ken in fa­vor of the idea of a fat rate of 10%, with no de­duc­tions what­so­ever. He’ll prob­a­bly fesh out his idea of a tax “tithe” in the weeks ahead.

Former gov­er­nor Mike Huck­abee wants to re­place the in­come tax and pay­roll tax with a na­tional sales tax of 30%. Po­lit­i­cally, this is a non­starter, but it taps into the de­sire to dras­ti­cally change what we have now.

The other can­di­dates’ plans ofer two or three tax rates. With one ex­cep­tion, none of these plans has a top rate higher than 28% (a cou­ple of them are 25%). Sen­a­tor Marco Ru­bio is the out­lier, with a 35% bracket, which isn’t a big break from what’s al­ready in place. Worse, his plan hits tax­pay­ers at far lower thresh­olds than does the cur­rent code. He must “fne-tune” this in the near fu­ture or risk con­ser­va­tives look­ing else­where.

All the can­di­dates want to kill the death tax, and all lower taxes on in­vest­ment in­come and cor­po­rate profts.

What the Repub­li­cans are putting on the ta­ble is so much more ap­peal­ing than the dreary, more-taxes twad­dle of the Democrats that there will be a man­date for dras­tic, progrowth tax sim­plif­ca­tion com­ing out of the 2016 elec­tion cy­cle.

Sec­ond, the new House lead­er­ship will be much more ori­ented to­ward pro-growth poli­cies than the out­go­ing crew. They’ll want to do big things re­gard­ing taxes, spend­ing and reg­u­la­tion. At the least they’ll be lay­ing the foun­da­tion for re­forms on a scale ex­ceed­ing that of Ron­ald Rea­gan in the 1980s—if the GOP nom­i­nates the right can­di­date.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.