Sunday, June 27, 2010

Try to understand, he's a magic man

Former Governor Terry Branstad will apparently aim to cut and restructure corporate taxes if he's elected in November with the goal of a massive boost in jobs and personal income (Here's one of the numerous stories where his goals are mentioned: It's true that both Republicans and Democrats across the country and nationally have embraced the idea of targeted tax cuts or tax credits when the economy is faltering (which doesn't mean it accomplishes their hoped-for aims). Thirty years after Ronald Reagan was first elected, though, there's still no evidence that the trickle-down theories of "Reaganomics" have any merit (here's a recent critique of the idea: Nonetheless, the approach was embraced by those in the GOP including Branstad, who was first elected in 1983. Don't get me wrong. Branstad appears to have very legitimate criticisms of his opponent, Gov. Chet Culver. He and other Republicans have been questioning Culver's fiscal management, including a penchant for making very large across-the-board cuts mid-year rather than passing smaller budgets. He also slams the huge "I-JOBS" bonding program that makes state money available to create jobs (with the bonds to be paid back using gaming revenues). But this belief that corporate America --- the titans of industry largely responsible for our current fiscal disaster --- will lift us out of the economic doldrums if we just let them keep more of their "hard-earned" money is just foolish. Or magic.