When Ronald Reagan was working to pass his signature tax cut legislation, he told audiences around the country that “Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15th.” The belief that lower taxes creates economic opportunity that, in turn, creates jobs and wealth is deeply ingrained in the Republican psyche. It is certainly core to my conservative credo as well, as lower taxes mean that more wealth is held by the private sector, not controlled by the government. For these reasons, I am bullish about the prospects of meaningful tax reform before the midterm elections next November. My bullishness, however, is tempered by the sobering reality that Obamacare remains on the books, which is further driving-up our national debt.
We Republicans are about to make the same mistake under this complete Republican government that we made under the last Republican government: cutting taxes without cutting spending. Democrats want to increase taxes and increase spending, and too many of our fellow Republicans want to cut taxes, but still support increased spending as well. We need to have conservative consistency like liberals have liberal consistency; we must cut taxes while cutting spending, lest we commit fiscal malpractice.
The most responsible way Republicans can cut taxes right now is to couple it with repealing Obamacare. I wholeheartedly support the proposal President Trump put-forth this week to cut America’s corporate income taxes; it will stimulate a boom of economic opportunity and growth that will help give all American families a pay increase. Tax cuts are critical to reversing the Obama-era stagnation that has gutted the middle class, and has begun to lower the standard of living for too many American families of all backgrounds. To pass a substantial tax cut, however, without repealing one of the key drivers of our soaring deficit, namely nationalized healthcare policy, may make an already dire deficit and debt situation worse.
While tax cuts, ultimately, increase revenues to Washington because a lower tax rate generates more rapid economic growth, and a smaller percentage of a bigger economic pie is better than a higher percentage of a smaller economic pie, there will be a lag period. Repealing Obamacare, under the House Republican plan passed earlier this year, would have lowered deficits by $337 billion over the next ten years. The spending reductions that will come from rolling-back the federal intrusion into healthcare markets, coupled with booming economic growth generated by repealing the onerous mandates of Obamacare on employers and individuals, will more than make fiscal room for monumental tax reform. If Republicans can accomplish these two primary objectives: repealing Obamacare and cutting taxes, then they will set America on an economic trajectory not paralleled since the Reagan boom of the 1980s.
I call on all congressional Republicans to work to pass the proposed corporate tax reduction, for the sake of the American economy. I also call on congressional Republicans to keep their promise to the American people to end the nightmare of Obamacare, which will truly pave the way for meaningful tax reform to make America’s economy great again for every single American.