Finally, a GOP Growth Plan

October 17, 2011

Wall Street Journal

By STEPHEN MOORE

The White House and congressional Democrats hope to use the Senate rejection of the Obama jobs plan this week as a campaign issue against "do nothing Republicans." Senate Democrats have crowed that "Republicans have no jobs plan of their own," but that's not true any longer. Senators John McCain of Arizona and Rand Paul of Kentucky have drafted a comprehensive economic growth blueprint that they hope to be the rallying cry of all congressional Republicans in the weeks ahead. We obtained a copy of the draft document which includes tax cuts, a balanced budget amendment, ObamaCare repeal, and a regulatory freeze.

In an interview, Mr. McCain said that the two GOP senators were asked by Senator John Cornyn of Texas to stitch together a counterpoint to the Obama $447 billion proposal that lost in the Senate on Tuesday. "Can you imagine a stranger pair than me and Rand Paul," laughed Mr. McCain of his co-sponsor, who is a libertarian Republican. "We found a lot of common ground, and that started with fixing the tax code," he adds.

The plan would also promote an America-first pro-drilling policy to expand U.S. industry and reduce the country's reliance on Middle East oil. That's an issue where Mr. Obama is highly vulnerable given the tens of billions wasted on wind and solar subsidies. On the regulatory front, federal agencies would not be able to issue new rules until the unemployment rate drops to 7.7%.

The plan, which would cut corporate tax rates to 25% from 35% is partly paid for by offering a reduced 5% tax on repatriated capital to the U.S. When that approach was tried in the Bush years, revenues rose as a flood of new capital that was trapped overseas poured back into the U.S. Mr. McCain fumed that the congressional score keepers won't count this maneuver "as a revenue raiser, even though we know it increase tax payments."

The plan won't get close to the 60 votes necessary in the Senate. But it does establish a polar star for Republicans to head toward. Republicans got a nice lift for the plan when a Chamber of Commerce poll asked 1300 business owners across the country whether they support the GOP plan of "permanent tax cuts and less regulation," or the Democratic plan of temporary payroll tax cuts and public works spending. More than eight of 10 said they favor the Republican approach.

Mr. Paul told Politico that it is critical that Republicans have a response on jobs to the White House offering. Now they have one, and we will see if Republicans actually fight for it.

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