Tax plan must be big enough to stimulate economy
Americans for Limited Government President Rick Manning today issued the following statement on the latest tax plan offered by President Donald Trump and the GOP Congress:
"Ronald Reagan's signature 1981 tax cut amounted to 2.89 percent of GDP over the four years post-enactment, with stimulative shockwaves being felt through the economy for decades. The unfortunate fact is that our nation's economy today has been stuck in neutral for more than a decade, not growing above 4 percent since 2000 and not above 3 percent since 2005. 3 percent GDP growth is now considered a fantasy when not too long ago it was the bare baseline expectation for U.S. growth. To get out of this permanent, stagnant, new normal of slow growth, flat wages and increasing economic despair, Congress needs to be bold in passing as large of a net tax cut as possible. Now is not the time for the tepid or weak of heart. Our nation's economy needs to grow, and the government needs to consume a smaller proportion of our overall wealth.
"The outline released today of the tax plan appears to be the bare minimum economic stimulation needed for expanded job growth, higher wages and bringing the 9 million 16 to 64 year olds who would otherwise be a part of the labor force back into the economy. While we recognize that the devil is in the details, the GOP Congress and President Trump are taking a step in the right direction with the tax plan that has been outlined. Of particular importance is the lowering of the corporate tax rate which will make it profitable for businesses to bring and create middle class jobs in the U.S. What's more, the simplification of the individual tax code along with doubling the standard deduction will be a boon for the average American taxpayer."
Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please visit our website at www.GetLiberty.org.