Pro-Growth Plan From The Gang of Six

IBD Editorials ^ | July 20, 2011 | LAWRENCE KUDLOW

[Kaslin]

There are a lot of known unknowns about the new "Gang of Six" budget proposal. But conservatives should hold back from trashing it.

Why? There's a large, pro-growth tax-reform piece in the plan that would lower tax rates across-the-board. This is a stunning reversal of the Obama Democrats' soak-the-rich, class-warfare campaign.

The best part of the Gang of Six plan is a reduction in the top personal tax rate from 35% to a range of 23% to 29%. For businesses, the rate would drop in the same manner. And the corporate tax would be territorial rather than global, thereby avoiding the double tax on foreign earnings of U.S. companies.

Finally, the plan would abolish the $1.7 trillion alternative minimum tax. That's huge. It's another pro-growth tax reform.

In a more perfect world, the Congressional Budget Office would score the pro-growth incentives of lower marginal tax rates in terms of a tax-revenue increase. That's the history stretching back to JFK, Reagan, and George W. Bush circa 2003.

And right now, the Gang of Six package is the first real pro-growth tax reform of all the debt-ceiling plans. It acknowledges the need for a growth element in order to solve our budget bankruptcy and limit spending, deficits, and debt. It would boost the economy and broaden the base (by reforming or limiting numerous deductions).

As a result, more income would be taxed at lower rates in a rising economy, throwing off a hell of a lot more revenues than we're getting today. Rising revenues from lower tax rates are a good thing.

[PGalt]

Thanks for the ping, justiceseeker93. FULK

Who made up this “Gang of six” name?

Gang/Collective...no difference. POS collectivist politicians.

ANOTHER classic example of why...

...Legislatures (state and federal) can be part-time jobs with 1/10th pay, NO retirement, NO perks, NO insurance. Get a job. Pay for your own crap, you POS politicians.

...That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness...

ALTER it.

It’s the socialism, stupid. DEFUND socialist collectives (GANGS), foreign and domestic.

[DManA]

We have to pass the bill so we can find out what’s IN the bill. Trust them.

[DManA]

Heard Beck this morning call the house republicans the Gang of 240.

[DManA]

$1 to $3 trillion (but who really knows) in new taxes is NOT pro growth.

[PSYCHO-FREEP]

[And, capital gains would increase by 119%...and that’s ridiculous, Larry.]

Yes that is LARRY! The investors market will drop their dividend paying stocks like a hot rock. There is also some fine print that targets other incentives for investing.

And they also pointed out that many current tax deductions will be reduced or eliminated, which will cancel out any benefit from a lower tax rate.

More Smoke-and-Mirror legislation from those career politicians.

[Ohioan]

The idea of increasing the Capital Gains tax at a time when the Dollar has been in a steep & perhaps accelerating decline is particularly ill conceived--unless the purpose is to confiscate the people's resources. Many "capital gains," are really only the inverse of a depreciating dollar--a tax on one's original investment, not a profit.

For the whole question of this type of taxation, see Capital "Gains". The Government only gets away with this because much of the public simply does not understand the function of money, as a Medium Of Exchange.

William Flax