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From the National Review Online:
A year after the Bush tax cuts the U.S. economy stands on the front end of an economic boom. Recent government reports on consumer spending, industrial production, corporate investment, and business sales suggest that overall growth in the second quarter could come in around 6 percent at an annual rate. That would put the trailing four-quarter recovery rate at 5.7 percent the fastest pace since 1984.
That year, if you recall, followed the big Reagan tax cuts. This year follows the big Bush tax cuts. A coincidence? No. The incentive power of lower marginal tax rates on economic growth is one of the most underrated facets of mainstream economic thought.
...The Reagan tax cuts two decades ago were focused primarily on personal income, reducing the top marginal rate from 70 percent to 50 percent, and then 28 percent. The Bush tax cuts of 2003 were aimed principally at investment, lowering the governments take by roughly 50 percent. Almost immediately an economy buffeted by recession, stock market collapse, and corporate scandals all inherited from the prior administration and smacked by a brutal terrorist attack and the necessary launching of two wars suddenly came alive.
New government data show that over the past year consumers are spending at a 9 percent pace at retail, companies are investing at a 9.5 percent rate in new business equipment, and manufacturing industries are producing at a near 6.5 percent clip, all while our high-tech industries are expanding at a 30 percent rate. Overall, business sales are rising at an 11 percent pace.
...Heres another 20-year parallel. Mondale wanted to raise taxes. So does Kerry. This is no way to win a presidential election. Until the Democrats recognize the economic-growth incentive power of tax cuts, theyll never be competitive.
...just as in 1984, the current tax-cut-sponsored recovery has very strong legs. Prosperity numbers will keep rolling in. Optimism will continue to mount. Bushs election-year bet on the incentive power of lower tax rates on economic growth will pay off handsomely in 2004, just as Reagans bet did two decades ago.
Bush has delivered powerful achievements overseas against terrorists, and at home on the economic front.
Big media will try to suppress the news so that we vote the way they want in the election; but the public will know what’s in their bank accounts.
(Hat tip: Joe Reinkemeyer)
