I’ve got a few thoughts on this so-called Obama jobs plan, scheduled for release next week.
For starters, let’s be clear: Government doesn’t create jobs. It’s the private sector that creates jobs. And that’s precisely what President Obama has been missing for nearly three years now.
Ronald Reagan knew this. John F. Kennedy knew this. And Bill Clinton eventually learned this.
The trick here is to create new incentives for workers, investors, and business. But first and foremost, we need to remove the regulatory obstacles. Here are some examples:
And when that’s done, call off the high-tax dogs. Let C-Corps and small-business S-Corps pay no more than a 25 percent tax rate. Move to territorial taxation. Repatriate foreign earnings, bringing the money home. And make the Bush tax cuts permanent, or else move in the direction of a true flat tax.
And on money, until the dollar is properly re-linked to gold, the Fed should do nothing right now. Since QE2 ended, the greenback has actually stabilized. That’s a hopeful sign for lower inflation.
So the only role for government is to set the stage to make it pay more after regulations, taxes, and inflation to work, invest, and take risks. Revive the animal spirits of America’s private entrepreneurial economy with fewer government obstacles and more take-home pay.
Think of it.
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