Alexander Speaks to Influential Conservative Economists, Proposes Permanent Lower 15 Percent Tax on Capital Gains and Small Business Relief to Spur Job Creation and Economic Growth

Posted on April 25, 2008

**** “One of the biggest things we need to make sure we are doing here in Washington is to encourage a growth environment and get rid of antiquated fiscal policies. That’s why I’ve proposed a lower 15 percent permanent tax on capital gains and to make the small business provisions that were in the stimulus package permanent.” – Lamar Alexander **** Senator Lamar Alexander (R-Tenn.) delivered remarks this week to economists at the 48th Annual Laffer Associates’ Washington Conference. Arthur Laffer, a member of President Reagan’s Economic Policy Advisory Board, helped develop supply-side economic theory and created the famous Laffer Curve which found that lower tax rates can result in higher tax revenues by stimulating economic growth. Reagan championed supply-side policies and led the country to an economic boom that would last for 92 months from 1982 to 1990. Alexander, who served as Secretary of Education in the George H.W. Bush Administration, highlighted his proposals for reigniting economic growth and job creation, making the following remarks: • “Arthur’s writing on the napkin and informing Governor Reagan was in the 1970s, and that was a long time ago. My thought is that our principles haven’t changed, but the world has turned upside-down. So we need to work on what the solutions are now. We can use ideas from groups like yours to help us in Washington, Republicans and Conservatives especially.” • “One of the biggest things we need to make sure we are doing here in Washington is to encourage a growth environment and get rid of antiquated fiscal policies. That’s why I’ve proposed a lower 15 percent permanent tax on capital gains and to make the small business provisions that were in the stimulus package permanent.” • “I think we should have a goal of clean energy independence. The way we do that is aggressive conservation, aggressive support for nuclear power, a crash program for carbon capture so we can use coal and support for various new technologies in renewable fuels. But we need to be careful about picking and choosing winners in the alternative fuels industry – we don’t know which ones are going to work yet. Right now, 70 percent of our carbon free electricity comes from nuclear power. So if we really care about climate change we need to accelerate aggressive conservation and build about 200 to 300 new nuclear power plants.” • “I voted against the Warner-Lieberman climate change bill in committee because it’s much too ambitious. This economy is 25 percent of the energy in the world and we do much better when we split things up sector by sector. So I think we should work on climate change, but we should do it realistically and step-by-step.” Laffer Associates – a Nashville-based supply-side economic investment research firm founded by Arthur Laffer – holds an annual conference in Washington, DC to provide and discussions with key public policy makers, experts and dignitaries. ###