The Better Deal

FDR launched his New Deal, Teddy Roosevelt the Square Deal and Truman the Fair Deal. Tim Pawlenty is offering the Better Deal.
In an economic address at the University of Chicago this morning, the Republican presidential hopeful laid out his case. It is red meat for Conservatives and Republicans.
Saying that “markets work. Barack Obama’s central planning doesn’t,” Pawlenty criticized an economy that “is not even growing at 2% today and that’s what all projections say we can expect for the next decade. That’s not acceptable. It’s not the American way.” Pawlenty is aiming for 5% growth to work our way to jobs and prosperity.
How to get there?
First, he highlighted tackling D.C.’s “out of control spending.” He would cut 1% of federal spending each year for the next 6 resulting in a balanced budget by 2017.
Then, he would replace the federal tax code with a “flatter, fairer tax system.” Pawlenty would call for an income tax of 10% on the first $50,000 earned, with $100,000 for married couples. Above that he would tax 25%.
He would aim for a reduction in the corporate tax rate from 35% to 15%, but also eliminate many of the loopholes that save a company like GE from paying any tax at all. His plan would eliminate the capital gains tax, interest in income tax, dividends and estate taxes. He would sunset many federal regulations as well.
Pawlenty says he would use a “Google test” to see if private businesses can be found on the internet that would perform the same functions government ones do. If they do, “the government doesn’t need to be doing it!” In the crosshairs would be the Postal Service, Amtrak and Freddie and Fannie.
As for entitlement spending, the former Minnesota governor would raise the Social Security retirement age for the next generation. He would cap and block grant Medicaid to the states as well.
“The president is satisfied with a second rate American economy produced by his third rate policies. I am not.”
As a successful governor, Pawlenty has a lot of experience on his side. His plan is worth a look.

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