It’s a vastly better plan than penalizing American businesses and their profits, which are the mother’s milk of stocks, jobs, and the economy. Senator John McCain gets this. His plan to slash the corporate tax rate is the single-best proposal on the campaign trail. McCain also understands that you don’t raise taxes during a slowdown. Nor do you raise taxes when the economy is bouncing back.

Right now, optimism seems to be returning to the stock market. None other than the New York Times ran a front-page story stating, “Wall Street Sees Signs of Sunshine.” That’s like the Daily Worker announcing the end of socialism. But let’s credit the old Gray Lady with reading the tea leaves right.

As a result of mighty efforts by the Federal Reserve, the credit crunch is easing and bond-market risk spreads are falling. The stock market just finished its best April since 2003, with the Dow running above 13,000. The Fed has come to the end of its rate-cutting cycle, and the U.S. greenback is starting to gain strength. With the dollar turning stronger, gold and other inflation signals are coming down.

Even tax rebates for working people will help a bit, although I’m no fan of temporary tax cuts. The much better idea is to make President Bush’s investment tax cuts permanent. McCain is for it. Hill-Bama is against it.

Whose call is it going to be?

Recessions and slowdowns come and go in the free-market economy. But even so, it looks like President Bush -- against all odds -- may have the last laugh. If he’s right on his no-recession prediction, Sen. McCain and Republicans down the electoral ladder are likely to benefit.