A Triumph of Politics

With the passage of the Senate Finance Committee tax plan, the Reagan Revolution is poised for its greatest victory. It is a triumph of politics—unadulterated by David Stockman’s grim brand of irony— won through inspired leadership in the Senate and the House by such improbable allies as Robert Packwood, who emerged as something of a legislative magician, Daniel Ros-tenkowski, Daniel Patrick Moynihan, Bob Dole, and Bill Bradley. In fact, a key source of the Finance Committee’s 20 to 0 vote was probably a 1978 campaign in New Jersey, during which would-be-senator Jeff Bell taught about-to-be-senator Bill Bradley supply-side economics. Finance Committee member Bradley has become the Senate’s most knowledgeable and articulate advocate of lower tax rates.

The vote was also a vindication of Jack Kemp’s insistence that if the Republican Party first pursues its opportunities for tax-rate reductions, its deficit problems will be much more easily solved. Provided that Paul Volcker and his associates lower real interest rates and end the continuing world deflation, the Senate bill would drastically reduce the deficit as a percentage of GNP. An emancipation proclamation for U.S. workers and entrepreneurs—liberating them from serfdom to tax lawyers and accountants— the tax reform will unleash enormous energy and creativity in American enterprise and summon investors and entrepreneurs from around the world. Congress has become an unexpected asset of American competitiveness.

About the Author

George Gilder

Mr. Gilder is a founder of the Discovery Institute, a venture capitalist, and the author of 15 books, including The Israel Test.

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With the passage of the Senate Finance Committee tax plan, the Reagan Revolution is poised for its greatest victory. It is a triumph of politics—unadulterated by David Stockman’s grim brand of irony— won through inspired leadership in the Senate and the House by such improbable allies as Robert Packwood, who emerged as something of a legislative magician, Daniel Ros-tenkowski, Daniel Patrick Moynihan, Bob Dole, and Bill Bradley. In fact, a key source of the Finance Committee’s 20 to 0 vote was probably a 1978 campaign in New Jersey, during which would-be-senator Jeff Bell taught about-to-be-senator Bill Bradley supply-side economics. Finance Committee member Bradley has become the Senate’s most knowledgeable and articulate advocate of lower tax rates.

The vote was also a vindication of Jack Kemp’s insistence that if the Republican Party first pursues its opportunities for tax-rate reductions, its deficit problems will be much more easily solved. Provided that Paul Volcker and his associates lower real interest rates and end the continuing world deflation, the Senate bill would drastically reduce the deficit as a percentage of GNP. An emancipation proclamation for U.S. workers and entrepreneurs—liberating them from serfdom to tax lawyers and accountants— the tax reform will unleash enormous energy and creativity in American enterprise and summon investors and entrepreneurs from around the world. Congress has become an unexpected asset of American competitiveness.