Borrowing money from abroad to


pay people not to work — that’s liter- ally what the “American Rescue Plan Act of 2021” did — results in higher prices. The 118th Congress could strike a


blow for prosperity by rescinding the federal spending increases of the past two years. With the federal government now


spending more than $186,000 per sec- ond, Congress should also implement practical, enforceable fi scal rules to restrain federal spending growth. The Swiss added one such rule,


known as a “debt brake,” to their con- stitution in 2003. The results have been spectacular. Switzerland’s cen- tral government is allowed to grow its spending no faster than its revenue growth over the course of the business cycle. Genius.


EXPENSING As investment struggles against the headwinds of rising interest rates, high infl ation, and a potential reces- sion, Congress should adopt supply- side, pro-growth policies that buttress much-needed investment.


2


PERMANENTLY EXTEND TAX CUTS AND JOBS ACT’S


A good fi rst step would be to extend


the Tax Cuts and Jobs Act’s (TCJA) “expensing” provision permanently. TCJA was arguably one of the most pro-growth measures signed into law during the Trump administration. But some of the TCJA’s most economi- cally benefi cial features were enacted on a temporary basis to minimize the static revenue loss during the 2018- 2027 budget window. These provisions are scheduled to


expire over the course of the next few years unless extended by Congress. Its expensing provision allows busi-


nesses to immediately deduct the full cost of the machinery and equipment they buy, instead of depreciating the assets over time. According to the nonpartisan Tax Foundation, expensing has a more powerful impact on investment and capital formation than other types of tax changes. It reduces the cost of equipment


and machinery and raises the capital stock, thereby boosting productivity and wages. It helps savers by raising returns,


and it helps consumers by reducing costs and increasing supplies of goods and services.


3


INDEX CAPITAL GAINS FOR INFLATION


Under current law, taxpayers pay fed- eral taxes on capital gains that are wholly attributable to infl ation. These types of taxes are not only unfair but economically detrimental. Consider the following example.


You invest $1,000, and after 10 years, you sell that investment for $1,200. But, if infl ation averages 4% over


that same period of time, the $1,200 you receive will be worth less in real terms than the $1,000 you invested initially. In this example, you would need


$1,480 just to break even in real terms. And yet, under current law, you’ll pay a tax on a $200 capital gain. Indexing capital gains during times


of low infl ation is good policy, and during times of high infl ation, index- ing is utterly crucial. By ensuring that measurements of capital gains take infl ation into account, indexing will help minimize economic distortions and enhance economic effi ciency. Gary Robbins, a former economist


for the Treasury Department, esti- mates that indexing capital gains for infl ation this year would create an additional 410,000 jobs, grow the U.S.


APRIL 2023 | NEWSMAX 15


INTEREST/KATJEN/SHUTTERSTOCK / MAN/PEOPLEIMAGES©ISTOCK / ENERGY/ALBERTO MASNOVO/SHUTTERSTOCK


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100