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Topic two: Tax reform. This is the most important political battle going on right now in our country, one that reflects the entirely different views of right, left and middle in our country. The struggle is going on right now; what remains at stake is the vital future of our country.
The country must have economic growth now -- not tomorrow, not in six months, not after the mid-terms, but right now -- today.
Our nation is in danger from threats overseas, and a stronger military is needed to face these threats. American workers are being left behind. Their jobs and their opportunities are dwindling. The next generation is frustrated, and can't find quality jobs to start careers. Many are postponing starting families. Some turn to drugs, which are destroying the humans we will need to face the challenges of the future.
We lost much ground in the Great Recession. The historic healthy rate of growth in the U.S. is 3.2%, and we have never made up the rate of growth under Obama to recapture those losses. We don't have enough revenue to operate the social welfare state we have built. Demands are made from the left for Medicare preservation, and expansion of Medicaid for the poor -- both of which add to the massive entitlement state that will bankrupt America by 2040 -- or earlier.
The federal government has only four options: We can cut spending, but the Democrats are resolutely opposed. We can raise taxes to spend more. Conservatives oppose tax increases, as do we at American Opportunity. Raising taxes slows growth, and places increase burdens on an already overtaxed working class. The third option is to make up the difference by increasing borrowing, issuing government bonds, and increasing the deficit. Conservatives in Congress oppose increasing the deficit. Senator Corker of Tennessee has said he will not vote for a budget that increase deficits.
That leaves the fourth path, and we here at American Opportunity believes the only way out is the increase revenue by growing the economy. Targeted tax reform, cutting taxes on business activity is key. Tax reform to encourage investment will improve productivity, create better and more jobs, and get more people paying taxes. The goal is not to cut taxes, the goal is to grow the economy. If, to achieve this, "the rich" get a tax bracket reduction, it must be tolerated to encourage savings and investment by those who seek to increase their wealth by investment.
The political left simply won't accept the premise that tax reform can grow the economy. If to have a tax reform there must be a deficit, at least it will be a deficit that leads to investment, growth and more revenue. The American left simply rejects the idea that more investment will lead to more growth. Our view is that we should put the problem to the American left. "If you don't believe tax reform will grow the economy, what is your idea to grow the economy? The status quo of slow growth and lack of revenue won't work. What is their idea to grow the economy? We have heard the message in opposition: "This is just tax cuts for the rich". OK. What do they propose to grow the economy?
Last week I attended a meeting with the President's staff to discuss the tax reform proposal. When asked my advice was: "Keep the message simple. This is not just tax cuts to buy votes; a "tax cut for the middle class"but a tax reform for growth, opportunity, better jobs an careers, for hope and opportunity through growth."
If we fail to achieve tax reform for growth, we face a future of slow growth, low tax revenue, stagnation and frustration. That is the alternative we must avoid.
Some news and articles we recommend for information and discussion purposes, none of which necessarily represent the position of A/O:
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As always, American Opportunity is always looking for new resources and topics we can address in detail. Please feel free to stay in contact!
Sincerely,
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