Indianola, IA- Delivering the keynote address to the Tea Party of America’s Restoring America event on Saturday, to a rain-soaked audience, Sarah Palin offered a stunning rebuke of crony capitalism, and offered a prescription to address this while also stimulating the economy: Eliminate all corporate income taxes, but also eliminate all so-called “corporate welfare” and other subsidies and bail-outs aimed at protecting some businesses at the expense of every other. This proposal represents a sweeping reversal of the current prescriptions in Washington DC. More, by eliminating the corporate hand-outs, it threatens the establishment and there will be strong opposition, starting at the White House, but certainly reaching to every lobbying firm and congressional office on Capitol Hill.
Given the tenor of her address, the crowd was enthusiastic, interrupting her with chant of “Run Sarah, Run!” Nevertheless, Mrs. Palin offered a serious policy proposal that deserves equally serious consideration. What this proposal offers is a way back from the depths of our current economic plight by encouraging investment in productive capacity in the US, freeing up capital currently frozen overseas because to return it to the US would subject it to an exorbitant rate of taxation. At the same time, it would place all corporations on even footing, providing no favors for one corporation over the other. In short, the government would be taken out of the business of picking corporate winners and losers to a larger extent.
This does more than merely reduce the size of government and stimulate economic growth. It strips powers from politicians who use subsidies and hand-outs to corporations as a tool to raise funds for their own political entrenchment. That may be the most important reason why the establishment will oppose this idea. This begins a path to reducing not only the cost and scope of government, but also limiting the power of politicians. The left will naturally oppose this, and they will certainly seek to paint the tax relief provided as a boon to corporations, but the truth is that the left will attempt to conceal their relations to the corporate cronyism that pervades Washington. More, they will try to hide the fact that what is really under assault in this proposal is an oligopoly among the legislative insiders, both Republicans and Democrats, that will remove one of the most popular tools for steering corporations while appearing to be hands-off, or worse, in the public interest, all while enriching themselves in one form or another.
This is a solid proposal for government reform and economic stimulation that would immediately provide gains in the general economy. It deserves serious consideration, but given the President and Congress now in power, that’s not likely. Real change will begin in 2012 when we are able to choose leaders who understand that the economic crisis we face is not the result of capitalism, but of the continuing perversions of it by those in Washington.
As published at: Mark America