Kire Schneider Online

Tuesday, December 18, 2012

The Fiscal Times: Mark Thoma: How to Reduce Political Gridlock and Boost the Economy

How to Reduce Political Gridlock and Boost the Economy

If Democrats and Republicans were serious about passing legislation to get the economy moving again where. We are growing at lets say 5% GDP about twice the amount we are growing at right now, then passing an. Economic and job growth act or whatever the legislation would be called that passed both chambers of Congress. Wouldn't be that difficult because I believe both sides at least the leadership of both sides have reached an agreement. On what the economy needs, we need more consumer spending, we need more people working in America. And paying income taxes and we need Americans business's to invest more in America and we have roughly. A 1T$ deficit when it comes to infrastructure investment and new infrastructure investment if done right, would mean. Members of Congress in both parties would be able to bring more money home and be able to create more jobs. In their districts in their states, business including corporate tax relief if that money is used to invest in America. Not sent oversees or pocketed in the bank, would mean members of Congress could say they cut taxes. For their business's in their districts and states as well, extending the payroll tax holiday would mean members of. Congress could say once again they voted to cut taxes for the middle class.

Its not as if Congress and the President doesn't understand what the economy needs to jump start it thats the issue. Its the fact that they have to work together to get anything done which would mean the other side would be able. To take partial credit for the economy rebounding once that were to happen and give both parties one less. Thing they could use against each other in the 2014 mid term elections when 468 members of Congress House and Senate. Will be up for reelection and the chance for one party to have complete control over Congress thats the problem. But the good news is that we are now closer to a deal on avoiding the fiscal cliff and once we get past that, then. We'll probably get into tax reform as part of whatever deal we get for deficit reduction and it would then be. In both parties best interest to work together to pass some type of economic growth package especially since. Republicans are going to have to give on tax hikes for the rich and would like an opportunity to get some of that money back.

Again its not an issue of both sides not knowing what needs to be done thats the issue but the politics and dealing. With their fringes thats keeping a deal from coming together because neither fringe wants their party to work. With the other party even if they give them everything that they want because the biggest thing that they are. Interested in is power meaning all of it and leaving the other party with none of it which is why its so hard. To get anything done in Congress.