Well, we applaud Gov. Bush for putting it front and center in the Journal’s op ed page.
We also like the cut in corporate rates to 20%, which is much lower than the currently published 35% (no one with depreciable assets really pays that). Personally, we’re down around 12% now, and we’re not that big.
And, at least he’s only going to whack the unrepatriated trillion or so that sits offshore 8.5%, which is better than little Barry and the Minions rate of 35%. Actually, it’s our contention that it shouldn’t be taxed at all, because the corporations who earned it have already paid tax once, either to the US or and foreign governments, or both.
But the big problem that we have with his plan is that there’s no discussion of how we pay for it. We think we’re about $200 billion upside down in the current year vs. revenues, and the debt stands at $19 trillion, which are Grecian proportions, and in this case, that’s not a good thing.
So, we could logically expect to add about $500 billion to the deficit while we’re getting to 4% growth. Presumably, we’re in balance at 4% (although this isn’t specified, either).
So, good 1st stab at things Jeb, contributed to the debate, now let’s put a little more meat on the bones. Go wake up Art Laffer.