Three keys to rescuing the economy
January 2, 2009| By Nathaniel Ward
The government must lower marginal tax rates and streamline regulation in order to expedite long-term economic recovery, Heritage Foundation Vice President Stuart Butler writes in The Washington Times.
"The people who will get us out of [the recession] are Americans with vision who will invest in production and jobs if they anticipate a decent long-term return," Butler writes. In other words, the American people and not government are the solution to the economic crisis.
To help entrepreneurs, businessmen and workers strengthen the economy, he suggests that Congress enact a three-part reform program.
- Lower Tax Rates. "Congress needs to enact a series of long-term, and ideally permanent, marginal tax changes to improve the returns on new ventures." This includes making the 2001 and 2003 tax cuts permanent, reducing marginal income tax rates, eliminating the death tax, lowering the corporate tax rate and extending "bonus appreciation" rules.
- Streamline Regulations. Costly regulations impose burdens on the entrepreneurs and companies that make the economy tick, even driving them overseas. "We don't need more red tape and regulatory uncertainty to complicate the already high risk of starting a business," he says.
- Don't Make It Worse. Government "assistance programs" intended to "take the sting out of economic transformation" to must not prolong the recession. For example, he urges lawmakers tackling the health care crisis not to "try to improve coverage by enacting job-killing mandates or taxes on employers."
These recommendations are part of Heritage's commitment to advancing conservative principles on the economy and other issues. Read more of Heritage's research on economic issues.
Nathaniel Ward is the Editor of MyHeritage.org—a website for members and supporters of The Heritage Foundation.
