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Today, America’s due date for filing the 2000 federal tax returns, EMPOWER.org (the educational and research arm of Empower America), released a white paper on tax rate reduction and economic growth, along with a separate supplemental report on monetary policy. These companion reports examine the nation’s economic history over the past three decades and provide a guide to ensure a strong and healthy economic future for America. They are invaluable references for all involved in the debate over how fiscal and monetary policies affect the American economy.
The white paper details the positive affects of cutting tax rates, the historical success of applying pro-growth economic principles in public policy, and the long-term benefits of fundamentally reforming the antiquated Social Security and tax systems.
This report demonstrates how Republicans and Democrats alike in Congress seem to be preoccupied with static aggregate revenue estimates and have lost sight of the vital role incentives play in the economy. The recent Senate vote to scale back tax rate reductions—a move that prevents America from returning to a high growth path—is case in point.
EMPOWER.org director Jack Kemp, in an introduction to the white paper, warns of a recession if tax rates are not reduced and if immediate steps are not taken to convince the Fed to ease the liquidity shortage. Kemp argues that lawmakers should abandon the old, out-dated static economic models and aggressively pursue pro-growth policies that will unleash the potential of the American economy.
The supplemental report on monetary policy concludes that the current economic slowdown was caused when the Fed engineered a deflation, and it recommends that the Fed abandon its current policy of interest-rate targeting in favor of a commodity-price rule using gold and other price sensitive commodities as reference points.
Both reports are available online at www.empower.org.