Over at National Review, Mitt Romney offers up an alternative to Obamanomics ...which bascially looks a lot like his 2008 campaign agenda. Here is a bit:
We should lower tax rates for middle-income families and eliminate their tax on savings altogether — no tax on interest, dividends or capital gains. Let’s also align our corporate tax rate with those of competing nations. These actions will rapidly expand consumption and investment, and right now, time is of the essence.
On the spending front, infrastructure projects should be a high priority. But because infrastructure projects involve engineering, environmental studies, permitting and contracting, they can take a long time to actually boost the economy. ... We should also invest to free us from our dependence on foreign oil, not by playing venture capitalist, but by funding basic research in renewables, material science, combustion, nuclear reprocessing, and the like. During the 2008 campaign, virtually every candidate agreed on the need for an “Apollo-like mission” to achieve energy independence. Now is the time to start. ... There is a danger that new spending and deficits will lead to runaway inflation, flight from the dollar, and another economic crisis. It is essential, therefore, that Congress and the president commit to reform entitlement spending as soon as the economy recovers.
Me: Eliminating taxes on investment while at the same time fixing entitlements would be a powerful policy combo to improve the economy and confidence. It is also interesting to note that Romney-nomics remains probably the purest expression of the New Gingrich economic philosophy: Cut taxes but also spend big money on key basic research areas.
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Entremaneur of Lexington, MA of MA 7:28PM January 16, 2009
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