By Sen. Marco Rubio
Tuesday, March 10, 2015
I recently came across several profiles in The Huffington
Post's series "All Work, No Pay: The False Promise of the American
Economy." I strongly disagree that the promise of America is false, but
the moving profiles of Americans struggling to make it in today's economy do
tell an important story.
Throughout the analyses in this series, I noticed three
themes highlighted with frequency: that the recovery isn't reaching most
people, that the economy is rigged in favor of a select few, and that the
American dream is slipping away. I am writing to share my thoughts on these
three themes, and to explain how I believe conservative reforms will create
opportunity for all.
Regarding the first theme, it is true that the economic
recovery is not reaching most Americans. Despite improvements in unemployment
numbers, wage growth is stagnant, GDP growth is tepid at best, and economic
production continues to lag -- all with devastating effects for the middle
class and those hoping to reach it.
Regarding the second theme, it is true that our economy
is sometimes rigged in favor of a select few. This is the inevitable result of
a big government that has extraordinary power over the private economy. When
government grows, it benefits those who can afford lobbyists to influence
Congress and who can pay lawyers and accountants to help navigate complex tax
and regulatory codes.
Regarding the third theme, it is true that the American
dream is slipping out of reach for too many Americans. Our leaders have failed
to realize that our current economic crisis is not the result of a routine
economic downturn but an ongoing structural change to the very nature of our
economy. Globalization and technological progress are transforming every
industry in America, yet the policies and institutions overseen by our federal
government remain stuck in the 20th century.
The profiles in this series illustrate how the current
approach has trapped our people. They are trapped by a higher-education system
built when only a small percentage of Americans needed college degrees, they
are trapped by economic policies designed before we had to compete with other
countries for jobs, and they are trapped by anti-poverty programs designed in
the 1960s that fail to equip the poor with the tools they need to rise.
Rather than adopting modern ideas, our president and
Congress have simply pumped more money into these failing systems. This
approach has not worked. I have dedicated my time in the Senate to proposing
ideas that will work. They will apply the principles of our founding to the
challenges of our time, and in doing so they will modernize the policies and
institutions holding our people back. I encourage you to read about those
reforms in detail here.
In this post, however, I would like to focus specifically
on my most recent proposal. In partnership with Sen. Mike Lee (R-Utah), I have
offered an overhaul of our current tax system that would benefit everyone profiled
in the HuffPost series. It will spark historic economic growth, which is
exactly what our current recovery is missing.
The Tax Foundation found that over the next decade, our
reforms would grow the economy by 15 percent, grow wages by 12.5 percent, and
create almost 2.7 million full-time jobs. One columnist at Bloomberg View wrote
that it would do "more to encourage growth than any [tax code] the U.S.
has had since the 1920s."
It will benefit struggling families by abolishing tax
penalties that punish parenthood and marriage. It will benefit middle-class
parents by letting them keep more of what they earn. It will benefit struggling
college graduates by sparking wage growth and creating millions of full-time
jobs. It will benefit business owners and their employees by allowing full
expensing of investments made to grow their business. It will benefit seniors
by eliminating taxes on dividends and bank interest.
It will benefit the unemployed by empowering America to
win the global competition for jobs. It will do so by decreasing businesses'
tax liability through rate reduction and full expensing, which will in turn
lower the cost of capital. It will benefit those earning too little by
increasing worker productivity, which will raise wages. The higher the
productivity of a business or a worker, the higher the compensation an employer
can provide.
From the individual to the business side, our plan would
yield a tax code that makes it easier for Americans to find jobs, and easier
for businesses to create them. It is a vital step toward restoring the American
dream. But it is only one step. This is why I have also proposed dozens of
other conservative reforms to go along with it. Together, these policies will
create more opportunities for everyone profiled in the HuffPost pieces.
The large headline splashed atop the series is "The
American Nightmare," which I assume was meant to contrast with the
American dream. While the profiles in this series provide a powerful look at
the very real and very understandable despair that is currently coiled around
so many Americans, it is important for every reader of these pieces, and every
person profiled in them, to know that it is far too early to lose hope.
We can recapture the American dream and bring it into
reach for more people than ever before. America's brightest days lie ahead, as
long as our leaders in Washington have the courage and vision to seize this
moment and fight for common-sense reforms. The 21st-century economy is all
about innovation, creativity, and productivity -- and Americans are the most
innovative, creative, and productive people on the planet. To unleash their
potential in our time, we simply need ideas that embrace the future, an economy
that grows dynamically, and a limited government that empowers every American
to pursue happiness as they see fit.
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