Texas Insider Report: WASHINGTON, D.C.– Ways and Means Republicans are committed to making pro-growth tax reform a reality in 2017. Last year, as part of Speaker Ryan’s “Better Way” agenda, we released a detailed Blueprint for bold, pro-growth tax reform. Now we are moving forward aggressively to turn the ideas of our Blueprint into comprehensive tax reform legislation that lowers tax rates, closes special interest loopholes, empowers families and small businesses, and unleashes job creation across the country.
By focusing on three crucial goals – growth, simplicity, and service – we will deliver the 21st century tax code that Americans deserve. Here’s how our bold plan for tax reform will benefit families and job creators nationwide:
Growth
Our Blueprint takes historic action to deliver a 21st century American tax code that is built for growth – the growth of families’ paychecks, the growth of local businesses, and the growth of our economy as a whole. These innovative reforms include:
A third major factor making for a stronger world economy is not directly related to the financial crisis. At the beginning of last year the markets and many commentators managed to get themselves extremely worked up over the damage supposedly done to the world economy by low oil prices. By contrast, it seemed to me that low oil prices had to be a good thing. But the losses from low oil prices were highly concentrated and visible in the short term; by contrast, the gains were more widely distributed and might only become evident to the beneficiaries after a period of time. Accordingly, it was likely that there would be a short-term hit to the global economy, offset by a longer-term gain. We are now into that longer term.
Meanwhile, the recovery from ultra-low oil prices has brought a further benefit, namely the easing of the pressure on hard-pressed companies and countries. Russia, for instance, should emerge from recession this year. Even so, oil consuming companies and individuals are still facing much lower prices than they were two years ago. The result is that the world should now be experiencing a substantial net dividend from lower oil prices.
The upshot of all of this is that world growth this year is set to be higher than last year. Not only that, but it may well be a good deal stronger than almost anyone expects. Of course, in the world of forecasting you have to be prepared for surprises. Over the last few years we have all been exceedingly well prepared for downside surprises. What I am about to say is decidedly risky but I will say it nevertheless: I have a hunch that we now need to be prepared for surprises on the upside.
Roger Bootle is chairman of Capital Economics
roger.bootle@capitaleconomics.com
http://www.telegraph.co.uk/business/2017/01/15/whisper-could-good-year-growth/