by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Over the past year, real GDP has slipped to a paltry 1.2 percent. Business investment continues to fall. Building and factory construction has dropped sharply. Productivity is flat. The profits recession is still in force.
And what’s the Hillary Clinton plan? Tax us into prosperity.
In her own words at the DNC on Thursday night, this is the fix: “Wall Street, corporations, and the super-rich are going to start paying their fair share of taxes.” Why? “Not because we resent success. [!] Because when more than 90 percent of gains have gone to the top 1 percent, that’s where the money is.”
Let me get this right. In order to spur growth, Hillary intends to raise taxes on individuals, businesses, capital gains, stock trading, and firms that move overseas (which they do because the U.S. has the most uncompetitive tax system in the corporate world). In addition, Hillary’s door is open for a carbon tax, higher payroll taxes, and a 25 percent gun tax.
She also argued in Philadelphia that the economy is not working the way it should because our democracy isn’t working the way it should.
… [A]ccording to new studies by Aparna Mathur of AEI, raising top marginal tax rates reduces growth incentives and yields very few revenues. Yet in addition to higher tax rates, Hillary wants $1 trillion in new spending programs.
The numbers also don’t add up for Obama, who defended his so-called recovery at the DNC and even called Hillary, a 30-year member of the establishment, a change-maker.
Obama’s seven-year recovery averaged 2.1 percent real growth at an annualized rate. For historical comparison, after seven years, JFK’s economy increased by 5.4 percent yearly and Reagan’s by 4.5 percent.
Did JFK and Reagan beget long booms by raising taxes? No. They cut tax rates across the board.
Hillary is a combination of Barack Obama 3.0 and Bernie Sanders 2.0. This is not change. This will not yield strong growth, lift jobs and wages, and make America more globally competitive.