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Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Friday, August 31, 2007

WSJ: Reagonomics 2.0

Reaganomics 2.0 (op-ed), by Stephen Moore:

Earlier this year the cover of Time Magazine depicted Ronald Reagan with a tear running down his cheek -- the message being that the political class has abandoned the Reagan legacy. There's no doubt Reagan's pro-growth, tax cutting philosophy is in full-scale retreat: This Congress has proposed higher tax rates on personal income, capital gains and dividends. Ironically, the Reagan economic philosophy of lower taxes, less regulation and free trade has never been more in vogue abroad -- so much so that it has become the global economic operating system. ...

[T]here's only about one place on the planet where politicians hold Reaganomics in outright disrepute today -- and that is here. The Democratic leadership in Congress believes that tax rates don't matter much if at all, and that the Bush tax cuts were a giveaway to the rich. Presidential candidate John Edwards has even suggested a near doubling of the U.S. capital gains tax rate as part of his economic program, and his rivals all have schemes to soak the wealthy as well. All of this threatens to move America from leader to laggard in the global race for job creation, capital investment and prosperity. Maybe that explains the tear rolling down the Gipper's cheek.

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What nonsense! The capital gains rate was raised from 20% to 28% in the 1986 tax reform act during Reagan's presidency -- yet Edwards' proposal to raise the rate from 15% back to 28% is excoriated as a plan to soak the wealthy. What a double standard!

Posted by: Gwailo | Aug 31, 2007 2:30:40 PM