June 22, 2015
By Henry Olsen
Like all the GOP presidential contenders, Scott Walker is being advised by economists and editorial writers to adopt a “cut the top rate first” tax policy. It would be a shame if he followed their advice, which would mean abandoning the approach that he has employed in Wisconsin to such political and economic success.
Standard “supply side” tax policy argues that the inventions and advances of the economy’s most active participants drive most growth. Thus, tax policy’s priority should be to encourage more of that activity by lowering the marginal rate on those participants’ income. Since the most economically active people tend to earn the most, supply-siders inevitably focus on cutting the top tax rate — which, at the federal level, currently starts at $457,601 for couples — as much as possible, even at the expense of tax cuts for earners in other income brackets. They vociferously oppose adding new tax credits or deductions to the code, and often even argue for the repeal of credits and deductions already on the books in order to “broaden the base” and finance further cuts to the top rate.
This theory has become Republican orthodoxy over the past two decades. It is, however, the exact opposite of what Governor Walker has pursued.
Read the full article at National Review: On Taxes, Scott Walker Has Wisely Jettisoned the Supply-Side Orthodoxy