Voters have high hopes for Republicans. By every indication, they plan to send a lot more of them to the next Congress, maybe even enough to take control of the House of Representatives.
It’s not hard to understand why voters are unhappy with President Obama and his Democratic Congress. They’re tired of waiting for the economy to improve. They want a real recovery, with real jobs and pay raises, and they’re unhappy about the rapid growth of government and a corresponding escalation of the deficit. They believe the national debt is out of control. And they blame Obama for most of that.
Republicans have been fueling that anger but so far have been relatively shy about offering alternatives. They promise to change that by offering a policy plan in September, after a monthlong recess they’ll use to listen to voters and craft ideas. A lot is riding on that plan -- at least in terms of voter hopes.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A recent poll by the Benenson Strategy Group shows just how much. The survey, conducted for Third Way, a moderate think tank, found that voters are counting on the GOP to come up with fresh ideas. Almost two-thirds said they expect Republicans to promote “a new economic agenda that is different” from former President Bush’s agenda. And that’s what they want. By 49% to 34%, they said if the choice is between Obama’s economic agenda and Bush’s, they prefer Obama. They don’t want to go back to the old ways.
So far, though, a return to the Bush era is exactly what Republicans have offered. As the expiration of the Bush tax cuts draws near, several GOP leaders have gone on record saying they want them all extended, and they insist there is no need to find offsetting savings to avoid exploding the deficit. Republicans have long argued that tax cuts grow the economy and pay for themselves, though the numbers don’t show that. The first round of Bush tax cuts came in 2001, and the 2002 deficit rose to 1.2% of GDP (from a surplus in 2000). The second round of tax cuts came in 2003, and the 2004 deficit rose to 3.5% of GDP. There were other factors involved -- notably higher spending for the war against terrorism and a recession, and Republicans say the deficit would have been worse without the tax cuts. But that argument -- that it would have been worse otherwise -- is the same one they dismiss when Obama uses it to defend the 2009 stimulus, which incidentally included more than $300 billion in tax cuts.
There are things that Republicans can usefully propose. A more pro-business policy that removes the uncertainty would help a lot, though businesses probably need to expect more regulation as long as Obama is president. A revamping of the tax code is sorely needed, but it has to be something other than cuts and more cuts. A resolve to work with the debt commission’s whole package of ideas, including tax hikes and entitlement cuts, is a necessity. More than anything, a real plan to create jobs is needed.
Still, even if Republicans take back the House, delivering on their goals won’t be easy -- not with Democrats controlling the Senate and White House. It will take bipartisan cooperation, which has not exactly been plentiful. Two years of complete gridlock may satisfy those Obama critics who just want to stop him in his tracks, but by itself, it won’t get the nation any closer to a more stable and prosperous economy.
-
Stock Market Today: The Dow Adds 15 Points To End Its Losing StreakEquity indexes opened higher but drifted lower as markets priced in new Fed forecasts.
-
What Is a Qualified Charitable Distribution (QCD)?Tax Breaks A QCD can lower your tax bill while meeting your charitable giving goals in retirement. Here’s how.
-
AI Regulation is Looming: Kiplinger Economic ForecastsEconomic Forecasts Find out what Washington and regulators have planned for artificial intelligence.
-
The Biden Tax Plan: How the Build Back Better Act Could Affect Your Tax BillPolitics Depending on your income, the Build Back Better Act recently passed by the House could boost or cut your future tax bills.
-
Kiplinger's 2020 Election ForecastPolitics For nearly a century, The Kiplinger Letter has forecasted the outcome of presidential elections to keep readers informed of what's coming and what it means for them. Here's our call for 2020.
-
The 2020 Election and Your MoneyPolitics We’ve assessed how the presidential candidates’ stances on financial issues will affect your wallet.
-
5 HEROES Act Provisions with a Good Chance of Becoming LawPolitics The massive federal stimulus bill just passed by the House of Representatives is "dead on arrival" in the Senate. But a few proposals in the bill have enough bipartisan support to eventually become law.
-
Vote by Mail: A State-by-State Guide to Absentee Ballot VotingPolitics With health authorities recommending people continue to social distance, the idea of voting by mail is becoming an increasingly hot topic.
-
9 Ways COVID-19 Will Change the 2020 ElectionsPolitics The 2020 election will be like no other in history, as the COVID-19 pandemic will upend the business of politics as usual.
-
How to Run for Local OfficePolitics If you’ve ever thought that you could do a better job than the elected officials currently in office, here’s how to launch a campaign—and win.
