Saturday, December 15, 2012

Grow You Way Out Of It

"They can begin by inserting in the tax bill a requirement the Congressional Budget Office provide as part of its routine reports projections of spending, revenues and deficits for growth rates averaging 1%, 2%, 3%, 4% and 5% per year. Such an analysis most likely would reveal tax increases and spending cuts will not resolve the federal government's fiscal imbalance at an average growth rate of 2% or less. By contrast, a sustained period of 4% growth would do far more to narrow the deficit and shrink the federal government as a share of GDP than any combination of tax rate increases and spending cuts being proposed by either party."
http://www.forbes.com/sites/charleskadlec/2012/12/10/how-republicans-can
-win-the-fiscal-debate-with-a-tactical-retreat/


This has been obvious for years.  You can almost pay for the entitlement state if the "how to enable growth" problem were solved.  I think it has been - liberty.  Less regulation - regulations make it harder to profit from putting capital to work.  Better incentives from the tax system (simpler system, fewer incentives to create waste).  Detangle employment and health care so it is less expensive to employ "us".  Kill the so called "corporate tax" - the rise in employment will make up the difference.

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