Possibly the easiest way to achieve this end is by noting that, in economic terms most people don't do more for less. They do more for more. When the government's share of their reward (i.e., pay and profits) gets unreasonably large, many, if not most people tend to relax, hold back, withdraw. We went through all this in the '70s. High taxation was depressing the level of work done throughout the economy. Underground dealing and personal dishonesty flourished. The Reagan administration cut taxes. Work and investment soared. In due course the economy bounced back.
No one expects Democratic Washington to sit still for "tax cuts for the wealthy," as broad-based cuts usually get labeled by editorial writers, TV commentators and liberals running for office. But the Wall Street Journal is right to note that "The Obama tax-cut proposals, if enacted, could pack more punch in two years than either of President George W. Bush's tax cuts did in their first two years" -- $300 billion versus $174 billion.
I propose we don't look a gift horse in the mouth. There's a precedent to be set here -- the admission by a governing body not exactly composed of Reaganite supply-siders that, yes, indeedy, tax cuts can work for the general good. Upon that admission renewed respect for common sense in taxation can be engineered. At the same time economic recovery gets a boost. No bad bargain, this.
Bill Murchison
Bill Murchison is the former senior columns writer for
The Dallas Morning News and author of
There's More to Life Than Politics.
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©Creators Syndicate
©Creators Syndicate