Minnesotan offers econ blueprint in Tuesday address:
-Spurring economic growth with a new and better tax code
-Restore confidence by balancing the budget in this decade
-Encouraging american innovation and investment
“Let’s start with a big, positive goal. Let’s grow the economy by five percent, instead of the anemic two percent envisioned currently. … We should cut the business tax rate by more than half. I propose reducing the current rate from 35% to 15%. … On the individual rates we need a simpler, fairer flatter tax system overall. I propose just two rates: 10% and 25%. Under my plan, those who currently pay no income tax would stay at a zero rate. After that, the first $50,000 of income – or $100,000 for married couples – would be taxed at 10 percent. Everything above that would be taxed at 25 percent. …
“I know government can cut spending, because I did it in Minnesota. I cut state spending in real terms for the first time in our state’s history. … We can start by applying what I call ‘The Google Test.’ If you can find a good or service on the Internet, then the federal government probably doesn’t need to be doing it. The post office, the government printing office, Amtrak, Fannie and Freddie, were all built for a time in our country when the private sector did not adequately provide those products. That’s no longer the case.”
TIM PAWLENTY’S “BETTER DEAL”
Changing the Direction of America by Boosting the Economy and Creating Jobs
Today, Governor Pawlenty shared a “Better Deal” to get America’s economy growing and creating jobs. By tackling Washington’s out-of-control spending and replacing the tax code, Governor Pawlenty’s plan will unleash private-sector growth, creating jobs, balancing the budget, encouraging investment and rebuilding a flatter and fairer tax system for individuals and businesses.
SPURRING ECONOMIC GROWTH WITH A NEW AND BETTER TAX CODE
Governor Pawlenty establishes a National Growth target of 5% to create millions of jobs and save the federal government trillions of dollars:
· Establish a new tax code for businesses, individuals, and families
· Cut the corporate tax rate from 35% to 15% to spur investment and American competitiveness in the global economy
· End the era of crony capitalism by eliminating corporate tax loopholes, subsidies and giveaways to level the playing field
· Providing the option for small and medium sized businesses to pay the corporate rate
· Replace the individual tax system with two brackets creating a flatter and fairer tax structure
o Individuals making $50,000 or higher will be taxed at 25%
o Individuals making $50,000 or lower will be taxed at 10%
o Married couples making $50,000 or lower will have an effective 0% tax rate
· Eliminate capital gains tax and dividend tax to encourage investment and saving
· Eliminate estate tax and interest income tax
RESTORE CONFIDENCE BY BALANCING THE BUDGET IN THIS DECADE
Governor Pawlenty has a proven record of cutting spending in real terms for the first time in Minnesota’s history. By employing the same priority based budgeting, Governor Pawlenty’s economic policies will balance the federal budget within the decade:
· Pass a Constitutional amendment that requires a balanced federal budget and caps federal spending as a percentage of our economy around the historic average of 18% of GDP
· Propose that Congress grant the President temporary and emergency authority to freeze spending at current levels, and impound up to 5% of Federal spending until the budget is balanced if Congress fails to cut spending
· Apply the “Google Test” to government agencies. If you can find a good or service on the Internet, then the federal government probably doesn’t need to be doing it.
· Employ Lean Six Sigma throughout all federal agencies saving up to 20%
ENCOURAGING AMERICAN INNOVATION AND INVESTMENT
Governor Pawlenty calls for rolling back regulations that are strangling American businesses, promotes American exports, and reforms the Fed to strengthen the dollar.
· Require sunsetting of all federal regulations unless specifically sustained by a vote of Congress
· Ratify trade agreements with South Korea, Colombia and Panama
· Double American exports by pursuing new bilateral free trade agreements
· Strengthen the American dollar by limiting the mandate of the Federal Reserve to focus only on inflation and price stability.