John Ensign: “The current method of assessing proposed changes in tax policy, static scoring, assumes tax cuts or tax hikes have no…”

“The current method of assessing proposed changes in tax policy, static scoring, assumes tax cuts or tax hikes have no effect on how taxpayers work, save, and invest their money. This model implies that tax policy changes have no effect on our economy, never produce higher or lower revenues, and never cause resources to shift within our federal budget. This is simply incorrect. Tax policy changes can have a huge impact on our economy. The idea that tax relief and investment incentives will strengthen our economy is not a new one. On April 15, 1986, President Reagan spoke about the positive effects tax relief can have on economic growth. He stated: ``whatever you want to call it, supply side economics or incentive economics . . . it's launching the American economy into a new era of growth and opportunity. . . .'' What President Reagan stated so eloquently in 1986 holds true today. Economic growth is more easily achieved in an atmosphere where more Americans are able to save and invest their money. Tax relief provides economic growth. When we draft legislation, we should understand not only the cost of tax relief to the federal budget but also the benefits that tax relief provides to the economy. To create jobs. And to ultimately increase tax revenue for the federal government in the long run. Tax relief provides jobs and profits, no matter who is in the White House and no matter who holds the majority in Congress.”