Posted on 08/20/2004 8:50:37 PM PDT by reformed_democrat
House Speaker Dennis Hastert tends to operate behind the scenes. He’s not one to make long public speeches or bask in the Washington glow. His image is more of a legislative tactician than a heavy thinker. But it turns out that Hastert has developed a very clear set of opinions on domestic and economic policy, all of which he reveals in his just-released book, Speaker. In particular, the book has an excellent pro-growth, free-market, pro-competition policy chapter that covers taxes, education, healthcare, energy, and tort reform.
In every case the speaker comes down on the side of the people and markets; not the government. On medical care he favors health savings accounts. On education he supports magnet, charter, or private schools. On energy he suggests full development of coal, oil, and gas reserves. On trial lawyers he proposes legislative reform to limit class-action lawsuits, especially medical liability and asbestos suits.
If Kerry takes the White House with Senate coattails in November, this worst-case scenario still leaves a Republican House. Hopefully it will act as a bulwark against galloping statism and a growing government footprint on the economy.
Hastert reassures that the House will do just that. He has some great conservative lieutenants in people like Tom Delay, Chris Cox, and David Dreier. And let’s not forget that House Ways & Means chair Bill Thomas snatched victory from the jaws of defeat in the 2003 tax-cut bill — legislation that miraculously delivered a 15 percent marginal tax rate for capital gains and dividends, along with a speed-up in the implementation of lower marginal rates on personal income. That tax reform is what really launched the economy into full-scale recovery. It may well be President Bush’s savior come November.
Speaking of taxes, Hastert has some very interesting pro-growth ideas. He correctly argues that American jobs move overseas in part because of excess taxes and regulations imposed on U.S. businesses. He also notes that U.S. products are encumbered by corporate taxes and employment taxes, both of which add measurably to a product’s cost and price.
“Taxes account for between 23 to 27 percent of the cost of our goods and services,” he writes, “but when our products go overseas; to France, Germany, or Japan; our taxes stay embedded in our goods or services.” European countries, however, rebate their tax burdens to the employing companies, thereby giving them a competitive cost advantage on the world market. “Our widgets have a tax burden,” says Hastert. “Their widgets don’t.”
His tax-reform paradigm looks like this: “For us to return capital and jobs to the United States, we’re going to have to change our present tax system and adopt a flat tax, a national sales tax, an ad valorem tax, or VAT. . . . it’s one of the most important things we can do over the next few years.”
Hastert adds that homegrown U.S. labor costs are excessively high for three reasons: taxation, litigation, and regulation. He also notes studies showing that Americans spend nearly 6.1 billion hours on their taxes annually, and that two-thirds of taxpayers believe the system is far too complex. No one knows just how big these wasteful costs really are, but we are talking about a huge chunk of change.
Hastert doesn’t exactly come out for the abolition of the IRS, but he does think it would be a great thing to do down the road. The speaker cites Rep. John Linder (R., Ga.) and his national sales tax proposal. He also cites Michael Burgess, a Republican doctor from Texas, who has introduced a bill that would replace the income tax with a flat tax over a three-year period.
Either of these proposals would enhance productivity and grow the economy more rapidly, doubling national output over the next fifteen years. “The answer is to grow the economy,” writes the speaker, “and the key to doing that is making sure we have a tax system that attracts capital and builds incentives to keep it here instead of forcing it out to other nations.”
Looks like we have a powerful supply-side mole in the U.S. House of Representatives. The former high-school teacher has already surprised many with his strong management skills and legislative acumen. This is a man who is interested in getting things done rather than hogging the klieg lights on television. A former wrestling coach, he’s the quintessential team player. He reminds me of another son of IllinoiS; Ronald Reagan.
Speaker is a must read for all of us, but hopefully President Bush will have a chance to turn its pages before his crucial speech at the Republican National Convention and the last leg of the 2004 campaign trail. The plain-speaking Midwesterner has some solid ideas for the Texan’s second-term agenda.
— Larry Kudlow, NRO's Economics Editor, is CEO of Kudlow & Co. and host with Jim Cramer of CNBC's Kudlow & Cramer.
I didn't know Larry Kudlow from NRO had written a review of the Speaker's book. I thought you might like to read it.
I have a better idea. Instead of imposing the flat tax on taxpayers, why don't we follow the Constitutional provision and add the tax via tariff on all goods and services entering the country? I know. I don't have enough cash to buy the politicians off. Too bad. I'd love to keep the money I earned.
"I made a mistake copying-and-pasting the title. It should be Larry Kudlow - NRO - Free Speaker -- Hastert has solid economic ideas."
Step to the whipping post and take it like a man. No whining or complaining! :) HA!
Thanks for the ping. A book of interest.
Heads up!
If it weren't for Thomas, GWB would be running a losing campaign against the Wicked Witch of Chappaqua, instead of Bunny Suit Boy.
GWB will ask him to resign if he finds out.
If you would like to be added to this ping list let me know.
John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information: http://www.fairtax.org & http://www.salestax.org
People and markets bump!
Early saturday morning bump
Too early!
Kudlow seems to be equally in support of a flat tax or NRST. I thought that Hastert had talked about an NRST or a VAT and that he had not been supportive of a flat tax. Also, I thought that President Bush had recently said that a flat tax wasn't the way to go. If President Bush, Speaker Hastert, Majority Leader Delay and almost all Democrats oppose a flat tax, then it would seem politically dead for the foreseeable future.
Thanks for the response to the article. The Speaker's book got kind of swamped by the Swiftboat Vets for Truth, since Regnery released them within a week of each other. It's been almost impossible to promote the book tour, because the RNC isn't allowed to help.
Normally, the party would have sent out advance notice to the cities the Speaker was in, but because of CFR, the RNC cannot help promote this in any way. They could sell their mailing lists to Regnery for "fair market value," but then anyone who wanted these lists could get them for the same price. MoveOn.org has trouble keeping their own information private -- can you imagine what they'd do with RNC mailing lists?
I have a friend whose husband works for the Speaker, so she's been giving me the tour dates and places as she gets them. I post them here, and ping posters from the states he's visiting. Not the most effective method, but he did have an anti-tax group come to one of the signings, so every little bit helps.
Thanks again for the interest.
No Way!
I used to be a democrat. It's my nature to whine and complain. It's in the DNA.
Besides, I'm a girl (female, not-male, whatever the PC term is).
In the Spring of 2003, the White House Economic Report to Congress included a special section on tax reform, comparing the flat tax and a consumption (sales) tax. The report concluded that the consumption tax is superior to the flat tax in important respects and overall. A very significant straw in the wind, I think, but not controlling on what is to be done, of course.
"Besides, I'm a girl (female, not-male, whatever the PC term is)."
Well. That explains a lot then. :) HeHe!
I also asked the bookseller about Unfit for Command. She says the reason why it's not in bookstores is because the publisher hopelessly underprinted it, and its on backorder everywhere. People ought to ease up on the conspiracy theories
"Besides, I'm a girl (female, not-male, whatever the PC term is)."
All right. How about this sexist remark? Step to the kitchen and get to cookin' :) Hehe!
Everyone who has gone to the signings has said he's a very pleasant guy to talk to.
I met him in a crowd of about 2,000 of his closest friends at his Mega Event a few years ago (I knew some people who were going, and begged and pleaded until it became less painful to simply invite me along). I was sitting with someone who works for him, so I thought it was normal for him to stop by the table and chat. Then I noticed he went to every table and greeted the guests.
Pretty down to earth for the third most powerful man in the free world.
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