Top Three Policy Reforms to Grow the Economy

Economist Jeffrey Miron of Harvard University outlines three policy reforms that he thinks would promote economic recovery and growth in the United States: cutting entitlements, freezing regulation, and replacing the existing tax code with a flat tax on consumption.

16 Comments

  1. Brian Phillips

    Unfortunately these things are highly unlikely to happen.  Entitlements are used to buy votes, and a flat tax on consumption is out of the question.  Our current economy discourages saving and highly encourages debt spending.  

  2. Tyler Heald

    Why is it out of the question to have a flat tax on consumption?

  3. Ryan Boyd

    It is sad, the safety net of Social Security was a nice idea from FDR’s liberalism but it’s not really sustainable. Will it be curbed or cut though? No, probably not because old people vote in far higher turnouts than others and politicians want to be in office. As for the tax code, it seems like a more sensible thing to start working on. Even just cutting all the exemptions would be nice. I wonder how much productivity is lost to understanding or avoiding the tax code, but H&R Block would suffer if it was simple.

  4. mikeknightofdawn

    Because that would make it difficult for special interest groups to carve out sweetheart deals for themselves by abusing the current tax code, which grows steadily each day.

    The question is not whether a flax consumption tax would be better, but whether it is politically feasible.

  5. Grady Flanagan

    It is comical. I ask my high school students which tax plan is better and they all agree the consumption tax is better. Shows that it is common sense that is perverted by the special interests

  6. Damian Robinson

    This would is the best way to get this country on the right track.

    To bad politician care more abou re-election than growing the economy.
  7. johnnycoronel

    love this, especially the part about taxing consumption rather than income. if you want to discourage something, tax it, so why not tax the most unproductive thing that people do, which is consumption? The income tax is unconstitutional and immoral.

  8. GeF

    a chance 2 grow

  9. taschrant

    Sad, but I think you’re right.

  10. taschrant

    I like people’s comments on this Learn Liberty.

  11. borisjvandruff

    Not to mention, a tax on consumption only removes the taxation on work, and places the taxation on non-work. A much better and more moral system.

  12. Hunter Markson

    Taxation distorts the price system no matter where you tax it.  How could you say one tax is more moral than another?  

  13. Polanco

    It
    is
    not a mater of morality, I agree, all taxes affect the price system.
     The thing is how they affect it.  Taxes
    on consumption are taxes were you get to chose to pay, not that you
    have to pay in order to get work.  They promote not spending.
     Taxes that tax income promote not getting more income (including that income that comes from savings).

  14. Autumn Reed

    Cut Entitlement, Freeze Regulations, Flat Tax on Consumption. Got it. 🙂

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