Former Minnesota Gov. Tim Palwenty is laying out a plan he says could return more vigorous growth to the U.S. economy, in excerpts from a speech he plans to give at the University of Chicago today.
Pawlenty will call for personal and business tax cuts, reducing government spending and regulatory reform. He says with the right policies that nation could return to annual economic growth of as much as 5 percent.
Pawlenty would cut the business tax rate from its current 35 percent to 15 percent and a “simpler, fairer, flatter” personal tax system in which there would be just two rates; 10 percent and 25 percent.
Pawlenty said under his plan people who currently do not pay income tax would remain at a zero rate. Individuals earning up to $50,000 or couples earning up to $100,000 would be taxed at 10 percent. Everything above that would be taxed at 25 percent.
In the speech, Pawlenty recommends the elimination of the capitol gains, interest income, dividends and estate taxes.
Pawlenty also addresses government spending in his economic plan. He says he would apply what he’s calling, “The Google Test,” to determine whether the government needs to provide a particular good or service, saying if that good or service is available privately online, the government “probably doesn’t need to be doing it.” Pawlenty cites the US Postal Service and Amtrak as examples of government programs that are no longer necessary.
Pawlenty also advocates federal regulatory reform claiming, “federal regulations will cost our economy $1.75 trillion dollars this year alone.” He said he would require the sun-setting of all federal regulation, “unless specifically sustained by a vote of Congress.”
Pawlenty choose President Barack Obama’s home political turf of Chicago to lay out his plan. In the speech excerpts, he accuses Obama of “dividing the our nation, fanning the flames of class envy.”
No word yet from Democrats on Pawlenty’s class warfare charge and economic plan.
Democratic National Committee Communications Director Brad Woodhouse said the following of Pawlenty’s economic plan.
“Perhaps no one should be surprised that a failed former Governor who left his state with a massive projected budget deficit in the billions of dollars is now proposing to massively explode the deficit at the federal level. Tim Pawlenty’s failing grade from Minnesota on fiscal and economic matters would be a disastrous prescription for the rest of the country.”