Former Virginia Gov. Jim Gilmore, currently president of the Free Congress Foundation, welcomed the idea of a new tax proposal, and called on Republicans to embrace a strong “pro-growth” policy. His organization has been advocating a similar strategy for more than a year under the slogan “Freeze, Grow, Fix.”
“It all links together, because we think you need to freeze spending and not just reduce spending,” Gilmore told TheDC. “We have to reduce spending, and get the growth part, to get the economy moving in an organic way that will raise more revenue — and it’s not just revenue for the government.
“It’s revenue for people’s pockets that will get the economy moving again,” Gilmore insisted, “because people will have some confidence that there will be some growth in the future. Everybody knows that you will never get enough money out of the rich, so … if you raise taxes you are going to be increasing the withdrawal of money out of the private sector.”
Gilmore charged that the Obama administration’s effort to promote economic growth through government spending was doomed to failure because it offers only a temporary fix instead of a long-term mechanism to spur economic growth.
Other groups on the political right agree. “There needs to be a focus on those parts of the tax code that will do most to promote economic growth,” said Ryan Ellis, director of tax policy with Americans for Tax Reform. “People need to be able to make, with some confidence, investment decisions going out over some years. A 10-year temporary tax reform probably won’t do the trick.
“You need to have a permanent change of law.”