Tax Rate Reductions Strengthen the Economy, But Excessive Government Spending Threatens Long-Run Performance

Publication Date: September 2006

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Daniel J. Mitchell; Michelle L. Muccio

Research Area: Economics

Keywords: Economy; spending; taxes

Type: Report

Abstract:

To enhance economic performance, Congress should make the pro-growth portions of the Bush tax cuts permanent, implement reforms to shift the Internal Revenue Code closer to a simple and fair flat tax, cap the growth of federal spending, eliminate programs or devolve them to the state and local levels, reform entitlements, and use cost-benefit analysis to rein in regulatory excess.