Congress is expected to vote on a stimulus package after the election. This package may include various spending increases including funding for infrastructure, and bailouts for states facing budget shortfalls. Unfortunately, proposals made thus far are emblematic of a failed approach. Increased spending, whether it is in the form of direct spending, or disguised welfare through the income tax system, is ineffective economic stimulus.
True economic stimulus requires a pro-growth tax and energy policy. Sadly, many in Congressional leadership have failed to realize this…Until now.
On Tuesday, House Republican Leader John Boehner presented “The Republican Rapid Economic Recovery Plan.” The plan contains several good policies that should be included in any new stimulus package. Specifically, the plan includes a 10 percent cut in the corporate tax rate, increases in the amount of investment small businesses can deduct immediately, relaxation of rules relating to net operating losses, and immediate implementation of an “all of the above” energy plan. This would encourage job and economic growth, and provide a much needed boost in domestic energy production.
The first economic stimulus demonstrated again that spending-focused proposals fail to generate results, and Congressman Boehner deserves credit for proposing new ideas that would generate short-term stimulus and long-term growth.