Congressman Paul Ryan released a new book today, sparking 2016 speculation along with it. The Way Forward: Renewing the American Idea is a very good, easy read so far. Surely there will be other supply-side nuggets later, but this passage on page 55 really jumped off the page.
In interviewing with Jack Kemp for a job at Empower America, Ryan recalls this exchange:
He asked me, “What do you think is better-a tax credit or a tax-rate reduction? Should we reduce tax rates or should we give people tax credits?”
I knew what he was up to. Kemp was famous for convincing President Reagan of the merits of supply-side economics. As a member of Congress, he had authored the Reagan tax cuts, and his pro-growth ideas helped create the economic expansion of the 1980s and 1990s. Jack Kemp didn’t just join the Reagan Revolution; he was the chief architect of some of its greatest victories.
In asking certain questions, he was trying to see if I was “on the model,” which was a term we used for supply-siders of those days. I was. “A reduction in tax rates,” I replied, “because growth occurs at the margin.”
Larry Kudlow is in the Investor’s Business Daily again today, this time talking about Governor Rick Perry: Even After Phony Indictment, Rick Perry Remains Formidable Candidate.
Larry Kudlow in today’s Investor’s Business Daily: Reps Need To Make Case They Can Do Better Than Dems. The title in the paper (see below) is better than the online title.
The Jack Kemp Foundation hosted Larry Kudlow last week for a conversation about “true growth.” The entire video is nearly one hour long, and it is absolutely worth your time to watch it.
Happy Independence Day!
Alan Reynolds: Stagnant For Decades, Japan Needs Supply-Side Tax Cuts
Larry Kudlow in today’s Investor’s Business Daily: Steve Scalise: A Strong Right Hand On Whip In The House. Kudlow was able to sit down and talk with Scalise, and this is part of Kudlow’s assessment of the new right hand man for Majority Leader Kevin McCarthy:
Scalise also emphasized that he is completely against the redistributionist policies coming out of the White House, especially the minimum-wage hike, which he believes would do more harm than good.
After speaking with Scalise, I don’t think there is any question he is a Laffer-curve disciple who clearly understands the link between low tax rates and high economic growth. And when I asked him about corporate tax reform, he told me he’d like to eliminate the corporate tax altogether. Definitely my kind of guy.
Scalise also favors strict federal-government spending limits and opposes the Senate’s plan for a gas-tax hike. “The states should have much more responsibility for infrastructure building,” he said. “In fact, the existing Highway Trust Fund should be put back to the states where they can make their own priorities and take full responsibility.”