Apparently President Obama is joking that he’s willing to change the name of the Buffett Rule to the Reagan Rule if that’s what it takes to get it through Congress. But there are already so many Reagan rules — and Obama is following none of them. Here are few Reagan Rules the president would be wise to follow:
1. Blame government, not business.
Reagan: “The people have not created this disaster in our economy; the federal government has. It has overspent, overestimated, and over regulated. It has failed to deliver services within the revenues it should be allowed to raise from taxes … At the same time, the federal government has cynically told us that high taxes on business will in some way “solve” the problem and allow the average taxpayer to pay less. Well, business is not a taxpayer, it is a tax collector. Business has to pass its tax burden on to the customer as part of the cost of doing business. You and I pay the taxes imposed on business every time we go to the store. Only people pay taxes and it is political demagoguery or economic illiteracy to try and tell us otherwise.”
2. Cut taxes and make the safety net more efficient.
Reagan: “The key to restoring the health of the economy lies in cutting taxes. At the same time, we need to get the waste out of federal spending. This does not mean sacrificing essential services, nor do we need to destroy the system of benefits which flow to the poor, the elderly, the sick and the handicapped. We have long since committed ourselves, as a people, to help those among us who cannot take care of themselves. But the federal government has proven to be the costliest and most inefficient provider of such help we could possibly have.”