On the recordApril 15, 1997
If we find this consumption tax bill is law and people are able to save once again, they are not penalized for doing so. In other words, their compounding of their money is not taxed, and they would have great incentives to save. If our saving dollars increased in this, I think it is pretty reasonable to suspect that interest rates come down. The other part of this bill that I think is so important that will prepare us for the 21st century is that people will have an incentive to invest in plants and factories and stores, because if they should happen to make a profit, they get to keep the profit, not send it all to Washington, at least until it is consumed. That, to me, is the answer for the 21st century as we compete with China and Asia and different parts of this globe, is give our own people incentives to build and invest, so we build our own plants and factories.
Source
govinfo.gov
