Diary

James Tisch Will Make an Excellent Treasury Secretary

James Tisch should be appointed Secretary of Treasury
James Tisch should be appointed Secretary of Treasury

Donald Trump ran for president telling us if elected he will make America great again via his leadership as president. He pledged to run the government as a successful CEO would and bring the best and brightest to help him do it. Having built a great and successful company himself, I am sure that is exactly what Trump will be looking for in selecting the Secretary of the Treasury to serve in the Trump administration. He would do quite well to nominate James Tisch, CEO of Loews Corporation, as the next Treasury Secretary.

Like Trump, Tisch runs a very successful company that has in excess of $4 billion in cash while holding less than $875 million in debt. Loews is a conglomerate holding company that owns several lines of businesses. Tisch says about Loews, “we like to buy strong, solid, traditional businesses that are not, in any way, a fashion business. When I say fashion business, I’m not just talking about clothing. I’m talking about high-tech businesses, businesses where you have to recreate yourself every few years or you need to develop new products. We like businesses that we know are going to be around for the next two, three, four, five decades and businesses that have a real need and niche within our economy.”

While we still have tens of millions of American out of work, and many of them unemployed so long the Dept. of Labor has stopped counting them as being jobless, we clearly need an economic policy designed to bring about prosperity. James Tisch understands how jobs are created in the privacy sector, and advocates a strong prosperity policy. He advocates reducing the 35 percent long-term capital gains tax rate to the lower individual capital gains tax rate, which alone would bring about economic growth. Additionally, he favors reducing corporate taxes, that are far to high, to the same as individual tax rates, an idea that would also help the economy grow. Both ideas, he correctly points out, would actually increase tax revenues to the U.S. Treasury because of economic growth.

A windfall profits tax on large American oil companies is “really a dumb idea,” Tisch says, and he further adds that he can’t be diplomatic about the idea. It would directly lead to our country relying more on OPEC and other foreign energy producers, because American oil companies would find it less profitable to drill for and produce more oil. Additionally, Tisch supports more offshore drilling for oil because the technology makes it far more safe than it would have been 30 years ago, and drilling for more oil domestically helps us become less dependent on foreign oil imports.

Reducing needless regulations, that impose costs on businesses that can only be passed on to consumers, is a major concern for Tisch. He points out how the regulations in Sarbanes-Oxley Section 404, which are just two paragraphs in the law, which has doubled the accounting fees charged to Loews. While he noted that these regulations addressed some bad things being done by some companies, they are far too draconian and costly on most businesses.

Taking a very reasonable view on the global warming debate, Tisch opposes a cap and trade program for its draconian effect on our economy, but believes that rising CO2 levels in the ocean water is an issue we should be concerned about. He says we should sure we fully understand the science regarding CO2 emissions and global warming before adopting a cap and trade program.

A strong advocate of technology, Tisch sees more electric cars on the road in the future because of the improvement in their technology and the use of the “hybrid” electric-gasoline systems in cars.

The bottom line is, Tisch has run a great company and strongly believes in the kind of prosperity policies we need to turn this economy around and create real economic opportunity for Americans. As such, he will be an excellent Secretary of the Treasury in the Trump administration. I urge to president-elect to appoint him.