The Trump administration’s regulatory rollback has ignited business and consumer optimism, driving economic growth at pace few anticipated. Having passed tax reform, Republicans are looking to pick up the pace by further encouraging businesses investment, cutting taxes for working and middle-class families, and eliminating the perverse incentives that drive our businesses, jobs and dollars to other nations.
While Democrats are mired in their disingenuous mantra on tax breaks for the rich, Republicans have focused their tax reform efforts on exactly the right goal: economic growth that benefits everyone. There was a time when Democrats understood the difference. As President Kennedy described it, economic growth is that tide that lifts all boats, putting the lie to the notion that class warfare is either desirable or inevitable.
The key to meaningful economic growth is business investment. During President Obama’s tenure, the regulatory state expanded, taxes increased and investment declined, hobbling economic growth and leading to predictions of prolonged stagnation. As recently as March, Obama administration economist Jason Furman was predicting a decade of GDP growth of “around 2 percent a year.” In May, Larry Summers, another former Obama economist, was comparing a belief in the Trump administration’s forecast of 3 percent GDP growth to believing “in tooth fairies and ludicrous supply-side economics.”