Ronald Reagan was prescient when he said: “We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much.” In the first place, wouldn’t it be nice if our national debt were only a trillion dollars. Who would have ever dreamed that Americans would look back on the days of a one-trillion dollar debt as the good old days? President Obama’s misguided economic policies have increased America’s debt many times the comparatively paltry trillion dollars Ronald Reagan talked about. Yet, President Obama refuses to accept what even a “C” student in Economics 101 would advise: cut spending and reduce taxes. Instead, the President prattles on about the evil rich, pandering to the poor and promoting class envy instead of taking positive steps to solve America’s economic crisis. If Barack Obama were a heart doctor, he would advise his obese patients to eat plenty of fats and avoid exercise of any kind.
Before criticizing the wealthy and stirring up class envy, President Obama would do well to read the works of Ayn Rand, particularly where she wrote: “American abundance was created not by public sacrifices to the ‘common good’ (taxes), but by the productive genius of free men who pursued their own personal interests and the making of their own private fortunes. They did not starve the people to pay for America’s industrialization. They gave the people better jobs, higher wages and cheaper goods with every new machine they invented, with every scientific discovery or technological advance—and thus the whole country was moving forward and profiting, not suffering, every step of the way.”
President John F. Kennedy was actively pursuing a major tax cut when he was assassinated. It fell to Lyndon Johnson to get the Kennedy tax cut through Congress. Ironically, Democrats use to understand the correlation between tax cuts and economic growth. In spite of the eventual massive spending on his “Great Society” programs, even Lyndon Johnson knew that the best way to increase government revenue was to stimulate economic growth through tax cuts. In fact, he wanted the tax cuts precisely because they would generate the revenue he needed to fund his “war on poverty” If Johnson—at the time the biggest government spender since FDR—got it, why can’t Barack Obama?
The key to a real economic recovery is to simultaneously cut spending and taxes. The economic problems America has been suffering for the last four years are the result of a simple truth: What is popular politically is not necessarily beneficial economically. Anthony Randazzo of the Reason Foundation developed a seven-point tax-cutting plan for getting America’s economy operating on all eight cylinders again. The plans includes the following: 1) Across-the-board cuts in taxes for individuals and businesses, 2) Reduction of FICA payroll taxes, 3) Specific tax cuts for small businesses, 4) Reduction of corporate taxes, 5) Tax holiday on all Wall Street investment returns, 6) Tax cuts on anything related to infrastructure investments, and 7) Elimination of fees and fines for accessing retirement accounts.