By Tom Quiner
There is only one way Republicans can beat President Obama next year. They must run a pro-growth campaign.
Ronald Reagan did it so beautifully. He appealed to the proven track record of American free markets, limited government and taxation, and the glory of entrepreneurship, which is essentially the exact opposite of the Obama approach.
Independent voters are more suspicious of Republicans, whether that’s fair or not. But they respond overwhelmingly to a positive campaign that sells market-driven pro-growth policies. Again, just look at Ronald Reagan’s success.
Our biggest problem isn’t really the national debt, it is slow economic growth imposed on America by Obamanomics.
Each of the Republican candidates have good ideas to promote growth. In reviewing them, Newt Gingrich has the best plan.
Unlike Mitt Romney or Rick Perry, Mr. Gingrich calls for a return to the monetary policies of the Reagan era that reigned in inflation. The loose money policies of the Obama years weakens the dollar and sets the stage for a hidden tax on Americans: inflation.
If we want to get America’s economy jump-started fast when Mr. Obama leaves office, Gingrich’s approach to lower corporate tax rates will be a God-send to our economy. He proposes a 12.5% rate compared to Perry’s 20%, Romney’s 25%, and Obama’s 35%.
Do you know where most of the new jobs come from in this country? From fast, young, growing companies. Retained earnings fuels their growth. Mr. Gingrich recognizes that these companies can use their own earnings better than Big Government to create jobs and grow the economy.
This is exactly what Ireland did in 1995, and their economy exploded, growing at a robust 7.4% a year ever since.
One of my friends who is an Obama supporter found it amusing that I didn’t like the payroll tax cut which Congress recently renewed. He said, “I thought you never met a tax cut you didn’t like.”
Well, the corporate tax rate cut is one I love, and Newt Gingrich has the best plan. If the Gingrich plan is passed, get your resume’ ready, because employers will be hiring again.
The capital gains tax is another tax that has a tremendous impact on the economy and job creation. Mr. Gingrich along with Rick Perry, have the best approach on this tax: eliminate it! Mitt Romney would keep it for wealthier Americans, and President Obama, whose instincts are always wrong when it comes to the economy, wants to raise it.
Why is cutting this tax such a big deal? Because 100% of new jobs come from start up companies. Start ups need investors, sometimes known as “Angels” to provide the start up capital to launch their enterprise. The higher the capital gains rate, the less money those Angels have to invest in dynamic, new companies that create the jobs and prosperity that has made America so great.
Unlike President Obama and Mitt Romney who pick winners and losers with their approach to tax reform, Newt Gingrich’s approach benefits everyone.
Would the Congressional Budget Office like Newt’s approach? No … because their static analysis is incapable of factoring in the surge of new tax revenues the government will enjoy as the economy explodes, just as it did under Ronald Reagan.
[Critics of Ronald Reagan talk about the high deficits during his terms. That was due to a profligate Congress, not a government starved for cash. Congress rejected Mr. Reagan’s budget 7 out of 8 years. Had they implemented it, the budget would have been balanced by 1989.]
Here’s what I’m saying: economic growth means everything to creating jobs and solving our debt problems. Under Obamanomics,long term growth is only projected to be 2.1% . The present value of future revenues is $1900 Trillion. If economic growth increases to merely 2.5%, they double to $3,800 Trillion.
After Reaganomics was passed, GDP grew by 7.4% in 1984 and averaged 3.4% during his two terms.
Economic growth solves a lot of problems. Newt Gingrich has far and away the best economic plan of all the candidates. If you want a higher paycheck and more jobs in this country, vote Newt.