Corvette Forum : Corvette Forums banner

1 - 1 of 1 Posts

19,914 Posts
Discussion Starter · #1 ·
House Republicans will seek to reset the economic-policy debate Thursday, offering a broad plan to boost jobs and growth by easing tax and regulatory burdens.

The plan includes a 25% top tax rate on corporations and individuals, compared with the current 35%, as well as higher domestic-energy production, new curbs on government regulations and overhauls of U.S. patent and visa systems to help entrepreneurs and high-tech firms.

In addition, the plan calls for aligning the U.S. with other major economies that basically tax their multinational corporations only on domestic earnings. That proposal could offer a boost to supporters of legislation calling for a temporary tax holiday for U.S. multinationals. It also calls for eliminating "special interest tax breaks" as a way to offset the budgetary impact of lower tax rates, without offering specifics.

Reflecting the GOP consensus that tax increases won't be a part of any eventual budget deal this year, the plan calls for "significant spending cuts" to rein in government deficits.

It is unclear how much impact the initiative will have, in either policy or political terms. Many of its elements, drawn from the campaign pledge Republicans issued last year, are familiar to the public. And partisan gridlock is preventing many major policy questions from being resolved.

President Barack Obama has expressed interest in lowering corporate rates, but the administration's proposal has been delayed by budget battles and the complexity of balancing competing business interests. The GOP proposal could add to the pressure for action.

Administration officials—and even some Republicans—also oppose a one-time tax holiday for multinationals, arguing that it would drain political momentum for a broader overhaul. Some officials also question its economic impact.

The new plan is aimed at helping Republicans reconnect with voters who remain anxious over sluggish job growth and higher prices. It is particularly focused on aiding small businesses, although multinationals also would get a boost.

It could help the GOP change the political conversation after a stretch when Democrats scored points by highlighting the House GOP's controversial budget, with its ambitious curbs on future growth of entitlement programs such as Medicare. Democrats on Wednesday cheered a victory in a House special election in New York, where they believe the proposed GOP Medicare cuts were central.

"It's what the voters most cared about—and were most scared about. As well they should be," Senate Majority Leader Harry Reid said on the Senate floor.

The new GOP economic plan seeks to shift public attention back to the economy, where party strategists believe Democrats—including Mr. Obama—remain vulnerable with voters.

"Really, the question is growth," Majority Leader Eric Cantor (R., Va.) said in an interview. But "growth, I think, has been left out of the discussion of late for whatever reason."

Higher economic growth rates would generate both jobs and additional accompanying tax revenues that would help ease some budget woes, he argued. But the U.S. has been falling behind on tax policy and other changes that could help the economy, Republicans argue.

In a speech to the U.K. Parliament in London on Wednesday, Mr. Obama offered little new on the economy. He pointed out the need for more investment in science and education as a way of maintaining the edge the U.S. and U.K. have enjoyed.

He also underscored the importance of safety-net programs. "That commitment to our citizens has also been the reason for our leadership in the world," he said of the U.S. and the U.K.
1 - 1 of 1 Posts