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Time
for Ideas-Based Congressional Leadership
By
Jack Kemp
Guest Columnist
The Wall Street Journal
recently leveled a devastatingly
accurate assessment
of congressional Republicans: “House
Republicans have become
more passionate about
retaining power than
in using that power
to change or limit the
federal government ...
a strategy (that) has
maintained a narrow
majority, but at the
cost of doing anything
substantial.”
The Journal was exactly right that Republican leaders “have become ever
more preoccupied with process, money and incumbency,” a frame of mind in
which ideas are an afterthought when not actually an inconvenience.
That’s why it was so encouraging when Rep. John Shadegg (R-Ariz.) threw
his hat into the ring to become House majority leader. Shadegg is a man of ideas
who demonstrated his willingness to put power at risk to advance those ideas
as majority leader when he resigned as Policy Committee chairman, the fifth-ranking
elected position in the House Republican leadership: “I personally believe
it is not appropriate to try to retain one position in our elected leadership
while running for another,” he said. “My campaign is based on reform,
and reform should begin with an open process.”
What a breath of fresh air to hear Shadegg say, “We must renew our commitment
to the principles that won us a majority in the first place: fiscal discipline,
smaller government, lower taxes, a strong national defense, returning power to
the states and greater personal freedom.”
I hope Shadegg follows up and offers a platform of ideas and that his rivals
for the position, fine candidates all, follow his lead and do the same. Here
are some suggestions for all the candidates to consider.
First, the House should complete welfare reform by block-granting Medicaid and
food stamps, just as has been done for Aid to Dependent Children.
Second, the House needs immediately to make the current 15 percent tax rates
on capital gains and dividends permanent. The House also must promote a broader
tax reform measure that reduces the corporate tax rate and the top marginal rate
for individuals to 20 percent or at most 25 percent, the level economist John
Maynard Keynes said should not be exceeded as a general rule.
If there were ever any doubt that the Bush tax rate reductions have been successful,
they were dispelled earlier this month when the federal government reported that
during the first quarter of the current fiscal year, which began Oct. 1, federal
tax revenues rose 8.8 percent from the first quarter last year.
And if there were ever any doubt that top marginal tax rates must come down further
to preserve competitiveness and maintain the current economic expansion, it was
dispelled recently when America’s premier computer chip manufacturer, Intel,
decided to invest $3.5 billion in a new plant in Israel, citing specifically
as a reason for the move that the company will have to pay only a 10 percent
tax on corporate profits.
Third, the House needs to fix the fatally flawed Medicare prescription drugs
program that just went into effect and is wreaking havoc among seniors. It must
become the incubator of wide-ranging Medicare reforms that will improve coverage
for seniors and halt the increase in costs predicted by the Congressional Budget
Office — almost tripling under conservative assumptions from its current
level of 3 percent of GDP to 8.6 percent by mid-century.
Finally, the House must restart the debate on transforming Social Security into
a worker-based retirement program in which individual workers have the option
to invest a significant portion of their payroll tax contributions in personal
retirement accounts.
As to lobbying reform, there are clearly some areas where the law can be tightened
up, but it would be a huge mistake - and counterproductive - if the Congress
were to overreact to today’s congressional corruption the way it overreacted
to corporate corruption a few years ago with the cumbersome, confusing and costly
Sarbanes-Oxley legislation. One of the best ways to prevent future congressional
corruption is to limit members’ opportunities to sell legislative favors
through appropriation earmarks.
I wrote recently about the need to revive the conservative movement as a movement
of ideas by rejuvenating conservative think tanks as havens of free thought and
fierce debate. The pending House leadership elections offer a golden opportunity
for Republicans to begin rejuvenating their party by making it the party of ideas
once again.
Jack Kemp is founder and chairman of Kemp Partners. Contact him at jack.kemp@copleynews.com.
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