Third, by lowering the taxation of labor, the plan would help produce a higher-employment recovery than would otherwise be the case.
Larry Kudlow advises:
I still believe the ultimate solution for all these problems — be it the carmakers, the banks, mortgages, foreclosures, or all the rest — is a significant pro-growth jolt for the economy. Economic growth will solve our problems. And the best way to move to a growth agenda is to lower tax rates across-the-board, including corporate taxes and individual taxes if at all possible.
Lower tax rates will boost asset values and reward successful producers and investors. That’s what we need. A $700 billion big-spending package merely moves money from the private sector to the government and then to a government-targeted bailout. That’s not growth. That won’t create new factories or new technologies or new risk-taking. Permanently lower tax rates will.
Republicans don’t control the agenda, but they might do a few things to help shape the Obama economic plan — or at the very least educate the public about the differences between the two parties.