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Press Release - How the Dole/Kemp Plan Will Cut Taces and Balance the Budget

September 30, 1996

The Dole-Kemp economic growth plan comes with the most detailed accounting of how we would cut taxes and balance the budget of any presidential campaign in history.

We have to balance the federal budget. We can't wait any longer. In 1995, the federal government paid over $ 230 billion interest on the national debt. Nearly 40 cents of every dollar the federal government collects in personal income taxes goes to pay interest on the national debt.

That is unconscionable. We simply cannot continue to mortgage America's future.

The Republican Congress passed two balanced budget plans that provided substantial tax relief for America's families and small businesses. Mr. Clinton enjoys I lie distinction of being the only president in a generation to veto a balanced budget passed by Congress With a Republican Congress, balancing the budget and providing tax relief are merely a matter of presidential will. If you have it, you can do it. Bob Dole and Jack Kemp have it and they will do it.

The Dole-Kemp Plan Balances the Budget

It is extremely difficult to balance a budget in a stagnant economic. Strong economic growth makes balancing the budget easier. The more our economy grows and flourishes, the bigger the tax revenue base. What makes the economy grow? Investment, job creation, new businesses. And to achieve those we need to lower tax rates on investment, savings, and entrepreneurship.

Will it work? Leading economists say it will:

Gary Becker, a winner of the Nobel prize for his work in economics, said that the Dole-Kemp economic growth plan "is a bold one and doable one that can raise the growth rate of the economy over the next few years to well over 3 percent... Now some critics are already calling this 'voodoo economics.' To me, however, it's basically Economics 101. That is what we teach all I freshmen, that investors and workers and everybody else in the economy responds in an important way to incentives, including tax incentives."

James M. Buchanan, another Nobel prize winning economist has said: "I support the central thesis in the Dole Economic Growth Plan, which is actually quite different from media reports ... I support enthusiastically the emphasis on the need for a Balanced Budget Amendment to the Constitution. And I also support reforms aimed at reducing the intrusiveness of the IRS, and reforms in tort law. I support any and all changes in taxation that will both (1) reduce the aggregate level of taxation, and (2) move the system toward a flat- tax, uniform rate structure."

Not only do Nobel prize-winning economists agree with the 1) ail It is supported by a wealth of experience. For one thing, throughout America today, such reform are being done. Balanced budgets and tax cuts are being achieved in statehouses from Boston to Phoenix, from Trenton to Lansing.

Second, there is the example of the Reagan years. Though much maligned by liberal critics since then, President Reagan's across-the- board tax cuts brought about the single largest peacetime expansion in our economy ever. Revenues exploded. There was just one problem: For every dollar of that revenue, the economy ever. Revenues exploded. There was just one problem: For every dollar of that revenue, the then-Democrat-controlled Congress spent $ 1.33. That is why America was left with the deficits still with us today.

Robert Dole, Press Release - How the Dole/Kemp Plan Will Cut Taces and Balance the Budget Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/316451

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