September 26, 2008
As I write this, what will happen with any Congressional bailout and tonight’s debate remains uncertain.
In his address to the nation Wednesday night, President Bush said if the $700 billion bailout proposal goes through the government could ultimately recoup its losses by selling the assets it is poised to buy. That is a good selling point, but I have been wary of promises from politicians.
What would work best would be to suspend the capital gains tax for a year or two. The markets would explode and provide more money in income taxes than any other idea. Barack Obama wants to increase it. I say, “Eliminate it.” How about getting rid of the corporate tax rate to spur business growth, again for a year or two? There are other taxes that will insure the government will get its money.
History has shown that when taxes are cut, growth ensues. Tax cuts will generate so much revenue that the $700 billion package won’t be needed. That’s conservatism in action, if only the politicians would embrace it.
Cal Thomas is a nationally syndicated columnist based in Washington, D.C.