Time To Think About A Tax Cut
Call it a Keynesian-style tax cut of the kind that John Kennedy passed in the '60s or a Reaganesque supply-side cut of the '80s, but the time has come to start thinking about a significant tax cut for the '90s. Not one that rewards loyal political constituencies under the guise of family values, but a tax cut that promotes economic growth. When Congress returns after elections, it should begin a serious debate over dropping income tax rates. While the current focus on restoring confidence and liquidity to panicky financial markets is the right one, the next big problem facing the U.S. will be bolstering demand in the real economy. The risks are increasingly on the downside. Growth is slowing, perhaps more than most people anticipate. There is even a whisper of recession in the air.
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