A recent analysis by the CBO has dire predictions for the economy, federal deficit and debt and assumes a maximum 1.9% growth in the economy. We can’t tax or cut our way out of this mess. Others have calculated that a 3% growth rate will virtually solve all the fiscal problem, including Social Security …. so where should our focus be now?
Even though we were at 3% in the 1990s, most economist see that as a real stretch now… so where should our focus be? Tax reform is one focus, tax reform that stimulates investment, innovation, productivity, jobs. One proposal is coming, but the liberal press can’t resist sniping at it even before it’s on the table. Instead, their headlines seek to mislead as one from the NYTs below. Lowering corporate taxes is not a negative thing, especially given 45% of Americans pay no federal income taxes.