March 1997, Volume 14, No. 3 Higher Rate of Growth Possible, Says Jack Kemp

"Why have we gone from an economy that consistently grew faster than 3% a year to an economy that cannot manage to grow faster than 2.5% during the best of times?" The culprit, according to Kemp, is Uncle Sam, with taxes, spending and regulation.

Kemp outlined a series of policy recommendations that, he believes, would restore a greater rate of growth and productivity to the economy, including the following:

Overhaul the Tax Code. "The single biggest step we could take to revive economic growth in America would be to completely overhaul the tax code to make it fairer, flatter, simpler and to eliminate double, triple and quadruple taxation of income."

Overhaul the Regulatory Process. "The second major undertaking necessary to boost long-run economic growth is a total revamping of how the federal government imposes regulations. Congress has delegated extraordinary rule-making authority to the regulatory agencies which should be reclaimed."

Reduce the Size of Government. "The federal budget deficit is a by-product of an undisciplined Congress and an economy that has grown too slowly. The deficit will go away only if we revive economic growth and Congress regains fiscal discipline. If immediate steps are taken to reduce the economic drag by cutting tax rates and alleviating some of the excessive regulatory burden on the private sector, the economy could be restored quickly to annual growth above 3%."