Now that jobs are priority one for the current administration, I thought it important to offer a solid, foolproof and time-tested approach to bring the millions of lost jobs back to America so we can once again be a growing and prosperous nation.
Regardless of what period of time you look at, across-the-board tax cuts work and work well in stirring economic growth, increasing revenues to the Treasury and creating millions of jobs. Liberals may argue this fact, but it's been proven by history.
In 1920, America almost had a massive recession that may well have developed into a depression. To avoid a total disaster, taxes were cut across the board and what followed is now known as the "Roaring Twenties." The economy expanded 59 percent from 1921-1929, thousands of jobs were created and revenues increased to the federal government.
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The decade of the '60s ushered in a young, dynamic president John F. Kennedy with great vision and ambition. Taxes were cut dramatically across the board and triggered the largest economic expansion in our history. From 1961-1968, the economy grew 42 percent and tax revenues grew 62 percent. Tens of thousands of jobs were created. From farming to space exploration, Americans were not asking what the country could do for them but what they could do for their country.
After four disastrous years of Jimmy Carter, we approached the '80s with double-digit inflation, a double-dip recession and unemployment and interest rates in the high teens. Ronald Wilson Reagan guided by history, not politics, substantially cut taxes across the board for all Americans. Subsequently, economic growth approached 37 percent, revenues to the Treasury increased 54 percent and the stage was set for the greatest and longest peace time growth in our history. Millions of jobs were created over the next 20 years.
In the horrific aftermath of the 9/11 attacks and a recession that started in early 2000, George Bush relied on across-the-board tax cuts. He knew historically cutting taxes would bring back jobs and turn around a devastated economy. People had more money to spend, and spend they did. His critics, including Juan McCain, claimed they were "tax cuts for the rich." Fortunately the facts proved the critics wrong as 2.5 million jobs were created overnight and growth roared back in a big way.
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Cutting taxes allows for more money to be placed into the hands of all Americans. A full 72 percent of our GDP relies on consumption. When people have more money, they consume. The lack of demand in our economy has prompted businesses to lay off 7 million employees over the last two years. Lack of customers is the problem. You can give small businesses a $5,000 tax credit to hire, but who in their right mind increases a business workforce unless they have customers?
While all the geniuses in D.C. debate the most efficient path back to job growth and prosperity, the simple answer is right in front of their eyes. Washington will try and fail and try again until it comes to grips with the historic fact of life. Tax cuts across the board do work! They do what government cannot.
Keeping taxes low and allowing Americans to keep more of their hard-earned money, combined with reduced government size and spending, is the formula for great success. Free markets, personal responsibility and freedom is what makes a nation great. Making people dependent on government for everything in their lives is not the solution. That creates people who are nothing more than modern-day slaves.
The time to cut taxes is now, and each American should not ask but demand that our leaders do so immediately – or look for another line of work. The clock is ticking Washington. Elections are a mere nine months away. We the people have stated loudly and clearly: enough is enough. Time to change course, or we will change it for you.