President Obama lost sight of our national priorities. As a result, Americans continue to suffer.
Recently, Sen. Charles Schumer, D-N.Y., suggested that the Democrats focused on the wrong problem, namely healthcare reform, when voters, especially the middle class, sought relief from the recession. The Senator went on to say, the Democrats "blew" the opportunity presented to them by the American electorate, according to The New York Times.
In essence, Obama's fiscal policy
did not focus adequately on job creation. The Democrats erred by focusing heavily on passing the Affordable Care Act at the expense of expanding job opportunities through fiscal measures.
According to The Brookings Institution
, federal fiscal policy contributed 3 percentage points to economic growth by mid-2009, up from 1.5 percentage points prior to the signing of the American Recovery and Reinvestment Act (stimulus program) earlier that year. However, with the focus on the Affordable Care Act, this figure skidded to -1 percentage point by 2011. It has remained in the range of -0.5 to -1.0 percentage point since then.
The diminishing returns of accommodative monetary stimulation
require smart fiscal reform to resuscitate our economy. My tax reform proposal, which is viewed positively by Republicans and Democrats alike, would likely achieve these objectives.
My plan would: 1) streamline the tax code, 2) expand the tax base, 3) lower tax rates, 4) balance the budget at current spending levels, 5) increase employment by lowering the cost of hiring and use of capital, 6) maintain low levels of inflation, 7) stimulate net capital inflows from abroad and 8) provide a strong safety net to the least advantaged.
Greater acknowledgement of our fiscal dilemma will empower the necessary change.
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