Larry Kudlow | Obama’s No-Growth State of the Union

Kennedy slashed tax rates and held down the budget. So did Ronald Reagan, who borrowed Kennedy’s ideas: smaller government, lower tax-rate incentives and a thriving middle class, where the economic pie grows ever larger.

In short, the Kennedy-Reagan policies were growth policies.

On the other hand, while President Obama quotes John F. Kennedy, he doesn’t draw the dots to Kennedy’s supply-side tax reforms. He does mention the phrase “tax reform,” but he’s not talking about lowering rates across the board while broadening the base to reduce deductions. Rather, he means penalizing companies that operate overseas and favoring companies at home that do what he wants them to do.

Think of it as taxation as a form of industrial policy, replete with tax targeting. This is decidedly anti-growth. And while opposing the sequester spending cut, Obama wants another $800 billion in taxes. More anti-growth.


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