His tax-reform paradigm looks like this: ?For us to return capital and jobs to the United States, we?re going to have to change our present tax system and adopt a flat tax, a national sales tax, an ad valorem tax, or VAT. . . . it?s one of the most important things we can do over the next few years.?
Hastert adds that homegrown U.S. labor costs are excessively high for three reasons: taxation, litigation, and regulation. He also notes studies showing that Americans spend nearly 6.1 billion hours on their taxes annually, and that two-thirds of taxpayers believe the system is far too complex. No one knows just how big these wasteful costs really are, but we are talking about a huge chunk of change.
Hastert doesn?t exactly come out for the abolition of the IRS, but he does think it would be a great thing to do down the road. The speaker cites Rep. John Linder (R., Ga.) and his national sales tax proposal. He also cites Michael Burgess, a Republican doctor from Texas, who has introduced a bill that would replace the income tax with a flat tax over a three-year period.
Either of these proposals would enhance productivity and grow the economy more rapidly, doubling national output over the next fifteen years. ?The answer is to grow the economy,? writes the speaker, ?and the key to doing that is making sure we have a tax system that attracts capital and builds incentives to keep it here instead of forcing it out to other nations.?
Looks like we have a powerful supply-side mole in the U.S. House of Representatives. The former high-school teacher has already surprised many with his strong management skills and legislative acumen. This is a man who is interested in getting things done rather than hogging the klieg lights on television. A former wrestling coach, he?s the quintessential team player. He reminds me of another son of Illinois -- Ronald Reagan.
?Speaker? is a must read for all of us, but hopefully President Bush will have a chance to turn its pages before his crucial speech at the Republican National Convention and the last leg of the 2004 campaign trail. The plain-speaking Midwesterner has some solid ideas for the Texan?s second-term agenda.