The Republican Candidate’s Economic Plans
The Republican Candidate’s Economic Plans
President Obama challenged the Republicans about their economic plans, saying that he had one and they had nothing. All the while he was waving his American Jobs Act bill. If it seems that the Congressional Republicans can’t be heard over Obama’s thunderous “Pass the bill” mantra, it because we can’t. The media really doesn’t want to deal with the real world of legislating. They are only concerned with short pithy one-liners.
Both the Congressional Republicans and the Republican candidates have full-scale well-thought through economic plans. Only the President is winging it with a grab bag of election year gimmicks that are an attempt to fire up his base. His proposal includes extending the reduced payroll tax, extending unemployment, subsidies for school construction, preferential treatment of certain favored groups and more infrastructure funding. This isn’t a jobs plan, it’s simply pandering. Even his own party members in the Senate aren’t too enthusiastic.
Meanwhile, the Republican candidate’s have put forward a variety of economic plans and proposals that after some judicious editing and combining might hold the seed’s for economic recovery. It’s interesting that each candidate’s plan is a true reflection of who they are. Let’s start with the leading contender and work our way down the poll ladder.
Mitt Romney, one of the frontrunners for the nomination, published a 149-page document entitled “Believe in America”. In it Romney calls for a variety of initiatives:
- Cut corporate taxes to 25%.
- Extend Bush-era tax cuts.
- Eliminate the estate tax.
- Relax or repeal selected regulations.
- Grow domestic energy production.
- Proposal for a multilateral free-trade agreement.
- Targeted tariffs and economic sanctions against China may be appropriate.
- Creation of a new unemployment insurance system with individual savings accounts.
Romney’s proposals reflect who he is and his background as an investment capitalist. It’s essentially out of the standard Republican playbook, nothing ground-breaking or surprising. He follows along with his campaign philosophy of being the last man standing.
Herman Cain on the other hand has put forward his now famous “9-9-9″ plan. It’s new, it’s groundbreaking and it has vaulted Mr. Cain into the top tier of candidates.
- A 9% flat tax on personal income with only charitable deductions allowed.
- A corporate tax rate of 9%.
- A Federal sales tax of 9%.
- It ends the inheritance tax, the payroll tax, the capital gains tax and the double taxation of dividends.
- Elimination of the Internal Revenue Service.
- Create Empowerment zones for employers, employees and residents of certain areas.
There have been criticisms from various sides of the political spectrum but Cain has started a discussion that has lifted him above the rest of the Republican candidates. Cain’s plan reflects who he is: a no-nonsense problem-solver.
Surprisingly, Rick Perry has not published a real economic plan for economic recovery. His website is devoid of anything resembling a plan. It only has statements like “No other candidate for President – Republican or Democrat – can match Rick Perry’s record on job creation”. As you read on you begin to realize that his plan is to take what was successful in Texas and transplant to Washington. Not a bad idea based on his record but certainly a reflection of who he is.
Ron Paul’s economic plan can be summed up with one word, “Cut”. Eliminate the Federal Reserve. Abolish the income tax, the capital gains tax, and the estate tax. Cut military spending by bringing our troops home from bases around the world. Veto unbalanced budgets and not raise the debt ceiling. His plan is a true reflection of his libertarian philosophy.
Newt Gingrich, the gushing fountain of ideas, has plans overflowing like a river in the spring. Gingrich’s “Jobs and Prosperity Plan” is a 9-point plan that focuses on cutting corporate taxes to 12.5%, a flat personal income tax of 15% with no deductions, elimination of capital gains, repealing a number of financial control bills, grow domestic energy production, repeal Obamacare and reform the entitlement programs. In truth his 9-point plan is more than just 9-points. This approach is representative of Gingrich, the idea machine. It would be well worth the Republicans time to adopt some of his plans.
Michele Bachmann’s economic plan reflects her role as a leader of the Tea Party Movement. Most of her economic plans call for reducing the size of government and slashing taxes. Just one hour ago she released her 11-point plan. Here are some of her proposals:
- Reduce the number of tax brackets.
- repeal taxes outlined in Obamacare.
- Fix the Alternative Minimum Tax.
- Eliminate the Death Tax.
- Make the corporate tax code simpler and fairer, and allow U.S. companies that generate earnings overseas to bring back those profits and invest them in American jobs and growth.
- Repeal Obamacare and the Dodd-Frank act.Enforce the immigration laws.
Rick Santorum has centered his economic proposals on the revitalization of the manufacturing sector. He proposes doing this by eliminating corporate taxes for manufacturers. He also calls for the Sarbanes-Oxley rules and Dodd-Frank. He calls for bringing government spending back to its “historical norm” of 18% of GDP.
Finally, Jon Huntsman’s plans call for lower tax rates of 8%, 14& and 23& which will create a broader tax base. His 12-page plan, “A Time to Compete” has the typical Republican slogans about the elimination of government red tape and the need for an increase in domestic energy production. Tax reform is his main selling point. Besides the lower, broader-based system he calls for the elimination of all deductions plus the elimination of the capital gains tax and the tax on dividend income. His plan reflects his background as a businessman and governor.
As the nominating battle moves on the Republicans need to collate the various plans and come up with something dramatic. The American people are thinking that half measures and traditional approaches haven’t worked. It’s time to try something new.
