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Tuesday, May 05, 2009
Larry Kudlow :: Townhall.com Columnist
Jack Kemp's Big Ideas
by Larry Kudlow
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Another of Jack’s pet projects was the bringing together of capital and labor, workers and investors, and businesses and jobs. His ultimate goal was to make the non-rich rich. And to achieve that, he knew Wall Street had to work with Main Street; investors had to work with unions; and high finance had to work with the hard-hit folks in the inner cities. He had a true post-partisan vision long before that phrase became fashionable.

Over the years Jack often called me to affirm and encourage my simple paradigm: You can’t have a good job without a healthy business to create it, and you can’t have a good healthy business without the investment capital to fund it. It’s a unifying message.

This week President Obama unleashed yet another attack on international businesses, essentially calling them unpatriotic tax cheats even though they abide by existing laws. Last week, Obama used his clout to undermine investor contract laws in the Chrysler bailout. The president has also blasted banks and Wall Street, and has launched a war against capital.

Jack Kemp knew all this to be wrong. He said we need to stop taxing saving, investment, and business two, three, and four times. Simplify the tax code, he said. Lower tax rates across-the-board for everyone. Understand that Hispanics in the barrio need the very capital that is supplied by investors. Without it there will be no new jobs. And jobs along with economic growth are the best anti-poverty weapons we have.

Jack Kemp never tore people down; he tried to build everyone up. He argued passionately to persuade, not to destroy. He believed in one grand economic coalition that in fact would constitute a rising tide.

So Jack has passed away and we mourn. But his big ideas and dreams will live forever.

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About The Author

Lawrence Kudlow is host of CNBC's Kudlow & Company

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Oh, and one more thing:
yes, we do agree that government is too large and too intrusive. In addition to scrapping our current tax system, I'm also for removing tariffs on imported goods -- another tax on consumers and more government protection for businesses. I'm a free market capitalist, and I realize that the purpose of government is to protect individual liberty.

"It is to secure our rights that we resort to government at all." ~ Thomas Jefferson

re: Apolitical
I'll stop beating the proverbial horse except on one point: the flat tax, while *collected* on income, is still a consumption tax. Ultimately, when you balance the equation, what's being taxed is what's being consumed: the business income minus business expenses (which includes salaries) -- *consumption* (businesses don't have any income if nothing is consumed). That's why if you ever go to a tax forum sponsored by the Heritage Foundation (as I have) or Americans for Tax Reform (as I have) or the Cato Institute or the traveling Republican Congressmen sales vs. flat tax debate in the 1990s (Reps. Tauzin and Armey, which I did), you'll hear them talk about the two main competing consumption tax plans: the "FairTax", and the flat tax. I get into this a lot with "FairTax" advocates (and get heaped with loads of personal insults), but I assure you, the flat tax is considered a consumption tax.

One other thing: you're not disclosing anything to the government except what the businesses are already disclosing in terms of their expense paying you your salary, which everyone then takes the same deduction and exemption on. There's going to be a lot of that under "FairTax" as well because extensive auditing will be necessary to enforce it, since "businesses" don't pay any "FairTax" and there's a HUGE incentive to get out of paying that 30% tax.
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