Webb: NFL, GOP, ACA and Tax

Three letters each and all issues that matter to most Americans. When President Trump waded into the NFL players kneeling or sitting during the national anthem controversy he put his seal of approval on the revulsion many Americans have to politics in sports. He did it bluntly and with speech that the average sports watcher in a bar or by the grill or somewhere with their friends can understand. There is even a debate over his choice of words but it was effective and now there is national attention on this issue.

Many in the media have attached a race narrative to this but there are no words from the president to support it and not one of them can hear the alleged dog whistle as they claim. In America, sports are a getaway from the everyday. However long this lasts, sports are no longer a getaway from politics or vice versa.

{mosads}Whether by design or not, we now have a distraction from two top issues that matter to Americans and to their economic stability. 

Notably missing in this media frenzy is the reaction of the Republican leadership class or most elected officials of any note. We can almost think that they are hard at work trying to or coming to agreement. 

This latest media cycle has taken too much of our attention off what matters to us when the cycle is over. The NFL, the players and the issues do nothing positive or negative for the economy of ordinary Americans and especially small businesses that are historical engines of our economic growth.

The GOP lives daily in internal controversy and can’t get anything done because of division within the ranks. The recent failure of the Graham-Cassidy bill to address the un-Affordable Care Act is attributable to Majority Leader Mitch McConnell (R-Ky.) and other senators. Sen. Lindsey Graham (R-S.C.) was unable to bring along his friend, Sen. John McCain (R-Ariz.), for the vote and that only helped fuel other opposition.

On Saturday, Sept. 30, when the federal budget year ends, the Affordable Care Act will still be the law of the land. There are many asking the question: Is it time to let it crash and burn?

It’s a dirty three letter word: “tax.” And the American economy needs tax reform now. 

Republicans, no matter which position they hold, need to be practical and get this done. 

The Republicans have a better chance because they can produce a tax reform package with 51 votes that has a sunset period built in. The business tax reform is needed first. We can get to individual tax reform second. We have the worst business tax rate in the world, ranging from 35 to 40 percent. The United States has higher corporate tax rates than many industrialized countries. This is a practice that has become all too common. The larger corporations use deductions, subsidies and other maneuvers to pay less, or in some cases no, federal taxes. 

Tax cuts are needed to boost economic growth. The conservative approach of reducing tax rates combined with simplification of the tax code will spark growth. This is a key part of what is often called the virtuous cycle which can take further advantage of a growing confidence in business sectors and entrepreneurs that helps raise middle class incomes. This is a cycle that feeds itself rather than an onerous tax code that feeds upon itself and depresses innovation and growth. 

One mistake the Republicans made is to use the phrase trickle-down economics. The fact is that a successful virtuous cycle has a trickle-up effect on the economy. In a consumer economy, as more and more businesses and individuals consume products and services to grow, the rising tide of activity begins to lift all areas. As the economy gets stronger the trickle up becomes a strong upward flow. As was said in the Reagan years, a rising tide lifts all boats. 

At the same time something must be done with the growth of government spending which has grown three times over since the Reagan presidency. To tackle this, we need an across-the-board haircut in many departments and bureaus. The next step would be individual assessment and deeper dives into areas of overspending. In some cases, we will have to tighten our economic government belt and sacrifice some programs. Many politicians on both sides of the political aisle will have to sacrifice their ideological pet projects. If we can get through this first step it’s possible they may find the courage to take on the largest drivers of our debt and entitlement programs. 

Webb is host of “The David Webb Show” on SiriusXM Patriot 125, a Fox News contributor and a frequent television commentator. His column appears twice a month in The Hill.