In today’s Wall Street Journal, Rick Santorum has an op-ed laying out his economic plan, entitled “My Economic Freedom Agenda.” He decries Mitt Romney for proposing “revenue neutral” tax cuts, “borrowing the language of Occupy Wall Street,” and lacking ”pro-growth tax policy,” and then lays out the entirety of his economic agenda, which is vaguely more supply-side. His bullet points:
• Unleash America’s energy. I’ll approve the Keystone Pipeline for jobs and energy security, and sign an order on day one unleashing America’s domestic energy production, allowing states to choose where they want to explore for oil and natural gas and to set their own regulations for hydrofracking.
• Stop job-killing regulation. All Obama administration regulations that have an economic burden over $100 million will be repealed. . .
• A pro-growth, pro-family tax policy. I’ll submit to Congress comprehensive tax policies to strengthen opportunity in our country, with only two income tax rates of 10% and 28%. To help families, I’ll triple the personal deduction for children and eliminate the marriage tax penalty.
• Restore America’s competitiveness. The corporate tax rate should be halved, to a flat rate of 17.5%. Corporations should be allowed to expense all business equipment and investment. Taxes on corporate earnings repatriated from overseas should be eliminated to bring home manufacturing. I’ll take the lead on tort reform to lower costs to consumers.
• Rein in spending. I’ll propose spending cuts of $5 trillion over five years. . . .
• Repeal and replace ObamaCare. I’ll submit legislation to repeal ObamaCare, and on day one issue an executive order ending related regulatory obligations on the states. . . .
• Balance the budget. I’ll submit to Congress a budget that will balance within four years and call on Congress to pass a balanced-budget amendment to the Constitution which limits federal spending to 18% of GDP.
• Negotiate and submit free trade agreements. Because many Americans work for companies which export, I’ll initiate negotiations in the first 100 days and submit to Congress five free trade agreements during my first year in office to increase exports.
• Reform entitlements. I’ll cut means-tested entitlement programs by 10% across the board, freeze them for four years, and block grant them to states—as I did as the author of welfare reform in 1996. I’ll reform Medicare and Social Security so they are fiscally sustainable for seniors and young people.
• Revive housing. I’ll submit plans to Congress to phase out within several years Fannie Mae and Freddie Mac’s federal housing role, reform and make transparent the Federal Reserve, and allow families whose mortgages are “underwater” to deduct losses from the sale of their home in order to get a fresh start in difficult economic times.
Good plan. Much better than Romney's 5,969 point "plan" which nobody cares to read or recite. Not to mention Romney's latest "tax reform" which would make the income tax even more progressive than it is today.
Reply to this commentLinkReport AbuseIt's a decent plan; probably not realistic to actually get passed but a strong starting point for negotiations.
The question, though, is where this 5 trillion in spending cuts is going to come from, and how does cutting 5 trillion in projected spending from baseline (including the military sequester) speed us up enough to get a balanced budget in 4 years, especially where tax revenues would likely go down somewhat given the depth of cuts - guys paying 20 or 25% marginal (and assuming deductions are still in place) and now only paying 10%. The question is where on the Laffer Curve we're on for any particular tax.
I also don't notice much about his manufacturing tax exemption - but I like that idea (if done properly, not withstanding economic purist objections which I do understand).
He lowered himself, though, with the over shots at Romney in the WSJ. You can say the same things in an understated way that will get the point across, and yet not make you look "angry."
Reply to this commentLinkReport AbuseIt's more than 5 trillion in cuts, because all means-tested pa programs are being cut by 10% and then frozen for four years.
Plus, I haven't seen the internal calculations upon which they relied, but perhaps they're not assuming -- as you and everyone else is -- a static effect from the tax changes.
Maybe they think -- as happens every time tax rates change -- that there will be a DYNAMIC effect to the economy, and hence on tax receipts, from the changes they advocate.
You know, like, if he's right and manufacturing gets spurred? For one example. The changes to treatment for repatriated income and corporate earnings likely will yield dynamic results, too.
Reply to this commentLinkReport AbuseMadisonian,
Before you falsely acuse me of static scoring, would you please read my post.
The sentence where it states "it depends on where on the Laffer curve we are with the specific rates" explicitely contemplates that some cuts will in fact result in more tax revenue, while others will approach static levels (and in between).
Yeesh!
Reply to this commentLinkReport AbuseFar be it from me to tell someone else to chill out.
I gave some examples of where dynamic results could ensue from the tax changes he proposed. I wasn't accusing YOU of static scoring.
And, the examples I gave don't rely on Laffer curve analysis, either.
It's a known fact that if we have the highest corporate tax rate among developed nations, then we are losing tax revenue by incentivizing business be conducted elsewhere. Likewise, with repatriated income.
And here I thought I would bolster your argument by attaching a comment on a reminder of dynamic effects to tax policy changes to YOUR comment, the only other person here who was thinking in dynamic terms.
Yeah, I read your comment, all-right! I posted mine with careful thought as to whom I responded.
Reply to this commentLinkReport AbuseI like the sound of that although the devil is in the details. For example, if his tax reform isn't revenue neutral he'll need to cut more than $5 trillion in spending. We've yet to see a Congress controlled by either party actually cut anything. At best they slow the rate of growth, so $5T in five years is a big lift. And there's still the question of whether he or Romney is more electable. If Obama wins it won't matter how good the loser's plan was.
Reply to this commentLinkReport Abuse"To help families, I’ll triple the personal deduction for children and eliminate the marriage tax penalty."
Holy crap! If Conservatives think that it's a problem that 50%+ of Americans don't pay tax, this is going to make that number absolutely skyrocket. Especially if many families are reduced to his 10% tax bracket.
I sometimes wonder if anyone actually pulls out a calculator when these guys come up with their ideas... and this:
"• Balance the budget. I’ll submit to Congress a budget that will balance within four years and call on Congress to pass a balanced-budget amendment to the Constitution which limits federal spending to 18% of GDP."
Is an absolute pipe-dream of a fantasy. Santorum is talking about majorly reducing the amount of tax revenues that come in; cutting a trillion a year WILL NOT balance the budget in such a scenario!!!
Profoundly unserious suggestions from Mr. Santorum. I'm actually angry that this made the WSJ without review by someone who knew what they were talking about and had a calculator...
Reply to this commentLinkReport AbuseThat would be your Herbert Hoover-style "conservative" anger you express at the WSJ, right, Wanda?
Allow me to assist in the alleviation of it. It's not the WSJ's job to fact-check or number-crunch the OPINION pieces that politicians submit. That type of work will take place in other articles authored by WSJ personnel.
They'd either run it, or not. And they tend to give pols of all stripes the forum, so they're inclined to run it, and let Santorum defend it.
That's how come your leftist fellow travelers in the administration were able to claim in those same WSJ op-ed pages that ObamaCare would REDUCE the budget deficit.
Remember that whopper, Wanda? It was called out in an editorial on the opposite page, not edited out.
Though it's doubtful, you just might be a Hoover-era conservative (sans the distaste for defeating Hitler, right?). Should that dubious claim have been edited out of your comments, or should you be allowed to make it and have your credibility judged accordingly?
Reply to this commentLinkReport AbuseThe review should have been done by Santorum's political team - not by the WSJ. It's not their place to correct the idiocy of others.
I note that you took no position on the disastrous ideas that were proposed.
"Though it's doubtful, you just might be a Hoover-era conservative (sans the distaste for defeating Hitler, right?)"
NRO's profanity filters don't allow me to properly express my contempt for someone who would make such a statement, Madisonian. Not everyone agrees on every topic, and that's why we have nice discussions online about political issues. But I do think that everyone would agree that comments such as the one I quoted above are risible, and you ought to be ashamed of yourself.
If you have an argument of substance to submit, regarding the wisdom of Santorum's plan - submit it. Keep the rest of your bile to yourself.
Reply to this commentLinkReport AbuseYou said just the other day that you are what "American conservatives used to be".
I conceded that might be true, if you were referring to Herbert Hoover and those in his administration, who, with their 70% income tax rates they enacted ,and all their Smoot-Hawley zeal for raising barriers to the flow of capital and goods, were not really all that conservative, you know?
So, following up on your comment that you are a left-behind conservative from yesteryear, perhaps you are of the stripe that was so isolationist, along with the progressives, as to oppose going to war with Hitler.
You cannot claim to be a Hoover-ite and pick and choose your points of convergence.
The claim itself was laughable. So what you find so bothersome is that I have a clever way to laugh at you.
Fish, the conservative from a by-gone era!
Riiiiiight. But if so, it must be from the Hoover era.
Here is what I think of Santorum's plan: it's better than Romney's; it's good to encourage making things again, because we won't survive as a nation if we don't make anything; it's good to lower the corporate tax rate, because that is what is sending jobs making things overseas; and he's on record to desire reforming our major entitlements.
That last point will only put pressure on him to be more specific, and I'm patient.
Lastly, I really don't care what the specifics of these plans are, because NONE of them EVER get enacted, as-is. That is reality. And the people who sit here and criticize because "that'll never happen!" need to join Mr. Jesse Jackson in RealityLand.
Reply to this commentLinkReport Abuse"Riiiiiight. But if so, it must be from the Hoover era."
You are a ridiculous person, Madisonian. I think I'll just leave it at that, regarding your supposed knowledge of others' beliefs.
"Here is what I think of Santorum's plan: it's better than Romney's"
No, it's not. But you like Santorum and don't like Romney, so you have an incentive to say it is. I don't like either of them, freeing me to point out that both of their plans are terrible and that the math doesn't add up on either one.
Reply to this commentLinkReport Abuse"vaguely more supply-side."
Well, except that everyone notices that, Brennan, not just you.
So, it's not Brennan's keen reading and analytical ability that compels the conclusion that Santorum's plan is more supply-side. It's the mere fact that Santorum's plan IS more supply-side that makes it readily obvious to those who closely follow both plans.
Seems Brennan is "vaguely" supporting Mitt Romney. Too bad for both him and Romney he's ashamed to be up-front about that, and prefers instead to hide his candidate advocacy innocuously behind the thin veil of supposedly objective analysis of "plans".
Reply to this commentLinkReport AbuseSantorum will "reform Medicare and Social Security so they are fiscally sustainable for seniors and young people"?
Bravo! I can hardly wait to vote for the guy. Why, I think I'll flap my arms and fly over to his local campaign office right now.
Reply to this commentLinkReport AbuseRed meat served with a 5 year plan. If that doesn't sound promising comrades, I don't know what does!
Reply to this commentLinkReport AbuseThere is a lot to like in Santorum's plan, although I don't like the government picking winners and losers (e.g., tripling the deduction for children). There is also no indication of his intent to close any loopholes or otherwise simplify the current tax code.
The biggest concern, however, is Santorum punting on Social Security and Medicare. Everyone knows these two programs are driving the debt problem, but a promise to "reform" them without saying how is not exactly a profile in courage.
Reply to this commentLinkReport AbuseRE: "not exactly a profile in courage"
Neither is taking credit for a book one did not write...but I digress.
RE: "tripling the deduction for children"
Credits are so much more evil than deductions - those are what has to go, first. People paying less than nothing in taxes is a giant crock.
Reply to this commentLinkReport AbuseUsing the tax code to incentivize behavior that the government decides is desirable --regardless of whether it is through deductions (mortgage interest, charitable giving) or refundable tax credits (earned income, child care) -- is the problem.
The government has no business picking winners and losers, and it is a system ripe for (and rife with) corruption.
Reply to this commentLinkReport Abuse>"All Obama administration regulations that have an economic burden over $100 million will be repealed."
Translation: "Just make sure that regulations will only place $99,999,999 of burden, because that's OK to President Big (But Not Too Big) Government. And make sure the eradication of the scourge of immorality becomes the central pillar of all decisions."
Right. I wasn't planning on bothering to vote in tomorrow's Michigan primary because I think all the options are terrible and will take whomever is the Not Obama in November, but now I must go and vote for Romney in order to crush Santorum's highly-destructive presence in the campaign. He is simply too politically inept and committed to waging Holy War to be allowed to drag down the election and ensure Obama finishes killing the country.
While K.Lo and Lowry (and fellow moral scolds like Hugh Hewitt and Bill Bennett) are totally up for a domestic Crusade against Satan's influence, sane people know that now is the worst possible time for the Stupid Party to take up the Cross on the field of political battle. Values ARE important, but if you lose everything to those who are committed to murdering the Republic and replacing it was an irreversible Soviet-styled system, what have you gained? Exactly.
Reply to this commentLinkReport AbuseSo you're upset that a fairly arbitrary line has been drawn between what will automatically be repealed, first, and what might hang out there a little longer?
I call that responsible planning. In fact, it belies Santorum's ability to solve problems.
$100 million is nothing. Further, measuring "economic burden" is as fuzzy as it gets, so if some particularly offensive regulation magically falls into that "$99,999,999" and below category, it can definitely easily be adjusted to make the cut for repeal.
So much hysteria. Geez. Go vote Romney. Just don't pretend you weren't going to from the start.
Reply to this commentLinkReport AbuseIn fact, it belies Santorum's ability to solve problems.
I couldn't be more in agreement. Heh.
Reply to this commentLinkReport Abuse