Tags: Economic- Crisis | ronald reagan | taxes

How Would Reagan Deal With This Economy?

Tuesday, 05 July 2011 08:27 AM Current | Bio | Archive

Where is Ronald Reagan in today’s GOP? A lot of Republicans evoke Ronald Reagan, but none have his courage, boldness, or chutzpah.

Reagan was not afraid to ruffle feathers and put dramatic, even radical plans on the table. That is how he created the Reagan revolution that revitalized America.

Today’s GOP is neither radical nor revolutionary. It is boring and pedestrian. Obama wants to dramatically raise taxes. The GOP's answer has been meek.

Today’s GOP is filled with funeral directors re-arranging deck chairs on the Titanic. In the face of massive deficit and debt, economic collapse, chronic unemployment, and a misery index rivaling the Great Depression, the GOP’s answer is to recommend either status quo, or tax and spending cuts so small it takes a microscope to find them.

The boldest plan of the bunch comes from Tim Pawlenty, who has proposed a flat tax that isn’t flat and doesn’t cut taxes. The media calls it “bold.” You mean “revenue neutral” is bold?

Here's the problem: Obama is a socialist who wants to punish business owners while the alternative is the GOP, which wants to keep things where they are, or nibble around the edges at best. Neither is the right answer. That puts America in a lose-lose scenario.

We need a contrarian new vision. We need a modern day Reagan with a bold plan. We need a capitalist evangelist whose is not afraid to state his goal — to dramatically and radically cut taxes to encourage entrepreneurship, and spark an economic boom.

As a true fiscal conservative, a "Reagan libertarian," let me outline a game-changing, conversation-changing tax plan.

Reagan boldly cut top tax rates from the 70 percent range to 28 percent, driving the Reagan revolution that created 20 million jobs and turned Jimmy Carter’s bust into a boom, creating the greatest economic expansion in world history.

The current Obama Great Depression is even worse than the Jimmy Carter malaise. It requires even bolder action. It requires political leaders who are not afraid of their own shadow. I hope the GOP is taking notes.

Create a one-year national income tax vacation.

That's right — an income tax vacation. For one year you keep 100 percent of what you earn.

Of course, liberals will scream that Obama already gave America a giant “tax cut.” But Obama only rewarded his voters — those who pay little income tax in the first place. That's not a tax cut, it's a welfare check. The group he left out just happens to be the economic engine of the U.S. economy — private sector taxpayers and business owners.

This plan aims the tax cut at the innovators and entrepreneurs. Certainly, Obama's socialist cabal will find it audacious to give tax cuts to people who actually pay the taxes. Perhaps that's why we have 1.9 million fewer Americans working today than when Obama's stimulus started.

This plan incentivizes the financial risk-takers, investors, producers, and job creators.

Stand back and watch the economic explosion when taxpayers and small business owners capitalize on a once-in-a-lifetime opportunity. They will do what all smart entrepreneurs do with money: spend it, invest it, and risk it to start up new businesses, or expand old ones.

Obama and his socialist cabal will scream, How can we run government without taxes? That question never bothered Obama when he spent almost $1 trillion dollars on his stimulus plan.

The cost of this plan is about $1.2 trillion (the total of annual personal income taxes). Give or take a few dollars, it’s the same amount Obama wasted on his stimulus plan to nowhere. The difference is that Obama’s trillion dollars created nothing, inspired no one, and added $1 trillion in debt for our children to pay.

Allowing people to keep 100 percent of their income for one year is the jump start the economy desperately needs. Simply put, taxpayers will be so excited, they will begin an investing spree that will create millions of jobs, and ultimately increase tax revenues. If critics are worried about the cost, then find corresponding spending cuts.

Note to the GOP: That is how you change the conversation. That is how you use boldness and courage to turn a historic bust into a boom. That is how you inspire voters. Reagan gave us the greatest tax cut in history to save us from Carter. Today we need to cut taxes to zero to save America from Obama.

An income tax vacation is the start of a revolution to save capitalism and take back our country.

I can feel Reagan looking down from above and smiling. And I can hear his words, “Let’s get this revolution started.”

Wayne Allyn Root is a former libertarian vice presidential nominee. He now serves as chairman of the Libertarian National Congressional Committee. He is the best-selling author of "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts." His website: ROOTforAmerica.com

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Where is Ronald Reagan in today s GOP? A lot of Republicans evoke Ronald Reagan, but none have his courage, boldness, or chutzpah. Reagan was not afraid to ruffle feathers and put dramatic, even radical plans on the table. That is how he created the Reagan revolution that...
ronald reagan,taxes
Tuesday, 05 July 2011 08:27 AM
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