Kudlow: Tax Reductions for the Economic Growth

By January 6, 2008Economy, Taxation

Larry Kudlow, writing in the National Review Online:

The key thing to remember is that businesses drive the economy. Businesses create jobs and incomes for consumers to spend. Today’s John Edwards/Mike Huckabee anti-business populism sounds more like William Jennings Bryan than Adam Smith. It’s absolutely crazy. They attack Wall Street and investors, which is another way of attacking capital. Without capital investment, there will be no new business, no new jobs, and no middle class.

And the reality is that today’s economic weakness is coming from the business side, not the sub-prime/housing/consumer side. We’re witnessing high energy and raw-material prices cause unit costs for businesses to rise faster than prices. That spells weakening profits.

Kudlow prescribes a major cut in the corporate tax and a simplification of the middle-income tax brackets.

President Bush talks about the economy Monday in Chicago and may put in a plug for the 2016 Olympics in the city.

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