In the final session of the 4% Growth Project conference, Jim Glassman asked the panelists for the one tax policy they would propose to get America...
In the final session of the 4% Growth Project conference, Jim Glassman asked the panelists for the one tax policy they would propose to get America to 4% real growth. Lawrence Lindsey: A VAT with no exemptions. Gid rid of the personal, corporate, and Social Security taxes, and replace them with a gross receipts tax. Tax cash, not income. “Cash is a fact; income is an opinion.” Moving away from the multiple definitions of income would cut compliance costs, which amount to 22 cents for every dollar collected in taxes. Stop discrimination against creating wealth in America. “If you want efficiency, and you want growth, it’s the only way to go.” Sam Brownback: A flat tax with a small-business accelerator. “Now is the time to propose bold solutions.” People are scared. Nobody has a plan. So the public is willing to consider broad solutions. Edward Lazear: Embodying the principles of low, efficient, and neutral taxes: a consumption tax and zero taxation of investment. Steve Forbes: A low flat tax, instant depreciation, no tax on investment, and no death taxes (“No taxation without respiration”). John Taylor: Get rid of unpredictability. Broaden the tax base (but not too much, to avoid stealth taxes) and lower rates. Alan Schwartz: “Something that looks sustainable” is more important than exactly what is in the tax code. Kevin Hassett: We have abandoned the view of the Founders — that the federal government should figure out how much it needs and mail the bill (per capita) to the states. John Stossel: “Simpify the damn thing” — get rid of all deductions — and that will create growth.
