A Disturbing Look at a Very Near Future: Tax Cuts vs More Spending at the Special Session

(Compiler's note: Must read. rca)

by Newt Gingrich

We have a choice between two futures.

For the first, fast forward 23 days. It’s November 17. Congress convenes for a special session with a veto-proof Democratic majority Senate, an expanded Democrat majority in the House and a Democrat in the White House.

The sole item on their agenda is to pass the $300 billion government spending package promised by House Speaker Nancy Pelosi back in October.

There is no mistaking what is coming. Even before Democrats won sweeping, one-party control of Washington, they had made their intentions to increase taxes and spending clear.

Originally pegged at $150 billion, Pelosi’s spending package ballooned as time went on.

With 11 days to go before the election, House Financial Services Committee Chairman Barney Frank (D-MA) fleshed out some details of the massive spending package. Frank called for a 25 percent cut in defense spending and conceded that Democrats will raise taxes to pay for new government spending. If they couldn’t get the votes in November, Frank was confident that they would have them in January.

And long before the election, President-elect Barack Obama had expressed his preference for wealth redistribution over wealth creation both on the campaign trail and in a startling radio interview in 2001, in which he claims the Warren Court was not radical enough. (Bill Whittle does an excellent job of dissecting this interview at National Review Online )

“You Can’t Say We Weren’t Warned”

The newly empowered Democratic majority passes the massive spending bill, confident that even a veto by President Bush can and will be overridden by their new Senate majority in January.

Before President-elect Barack Obama even takes office, government spending increases by $300 billion, bringing the grand total for the last six months of 2008 to $1.45 trillion.

And all center-right Americans can do is shake their heads and think, “You can’t say we weren’t warned.”

There is a Different Future: Make the Election About Big Spending Vs Big Economic Growth

For candidates, campaign managers, and consultants who are disturbed at this look at the very near future, there is another way.

But that way begins now. Today.

To avoid defeat on November 4 and avoid an out-of-control spending spree in the new Congress, the voters have to be given a real choice on Election Day.

• A choice between robust government spending and robust economic growth;

• A choice between higher spending and lower taxes;

• A choice between spreading the wealth around and increasing it through rapid economic recovery.

Because when Americans are asked to make these choices, our answers are clear and unequivocal.

We trust the private sector to grow the economy more than government. We favor keeping our money over giving it to Washington. We favor creating more wealth over redistributing the wealth we’ve worked for and saved.

We just have to be given the choice.

Three Times More Americans Believe In Tax Cuts Over More Government Spending

Newly released polling data show just how out of touch with Americans the REPO Team (Reid-Pelosi-Obama) pre-Christmas spending spree is.

By 60%-20%, Americans believe lower taxes, not higher government spending, will best ensure economic recovery, according to a new Fox News/Opinion Dynamics poll.

By 86%-9%, Americans believe government should focus on jobs and economic growth over income redistribution, according to a New Models/Winston Group survey.

By 71%-25%, Americans believe that if you cut taxes on small business it will create new jobs, according to the New Models/Winston Group poll.

So What Are We Waiting For?

So what are we waiting for? To counter the Reid-Pelosi-Obama massive $300 billion government spending spree, Republicans should offer a $300 billion tax cut package.

House Republican Leader John Boehner (R-OH) has proposed a rapid economic recovery program that should be the centerpiece of the campaign going forward. Instead of marrying new deficit spending with liberal special interests like the Reid-Pelosi-Obama plan does, the Boehner plan marries sound economics with the small government, free market values of the American people.

Here are some of the reforms in the Boehner rapid economic recovery plan:

• Energy Independence: Creating jobs and reducing energy and food costs by enacting an “all of the above” energy plan. For more information, watch my new movie “We Have the Power” (watch the new trailer here and buy the movie here ) and read my new book Drill Here, Drill Now, Pay Less .

• Creating Jobs: Bringing American jobs back home by lowering the tax rate on profits that companies bring back to the United States.

• Restoring Home Values: Encouraging home purchases by easing capital gains rules for homes purchased in the next 18 months and held for at least five years.

• Spurring Economic Growth: Immediately suspend the capital gains tax on individuals and businesses for equities purchased during the next two years.

• Encouraging American Companies to Assist in Recovery: Lower the tax rate on business income so American companies have an incentive to invest in distressed assets.

• Protecting Retirement: Suspend rules that require individuals at age 70½ to begin withdrawing from their Individual Retirement Accounts. This would spare investors from being forced to sell their stocks at just the time when the market is hurting the most.

I will have more to say about what we can do now to avert this impending massive government spending spree at an event this Friday at the American Enterprise Institute entitled “Energy, the Economy, and the Special Session of Congress.” For more details, go to www.aei.org.

In the meantime, there is no time to waste. Republicans and center-right independents and Democrats can give the voters a real choice in the election, or we can lose our choice in the congressional special session to come.

Either way, you can’t say we weren’t warned.