But he was positively exuberant about the Republican economic program and its key feature, cutting taxes. When the tax burden gets too high, you simply discourage larger and larger numbers of people from working and from saving and from investing. This is not magic. Our critics would like to say that this is voodoo, or something. It s not magic at all.
People respond to incentives and rewards.
And that s what drives a free economy. It stimulates investment, and speaking from a California perspective where we have literally hundreds of thousands of companies and cutting edge industries, some of which are aggressively seeking new investment and new capital, it would be a tremendous stimulus to the California economy. Such firms, their stock not yet publicly traded, rely on private investors for the money to do research and development, to expand, even just to retool. CEO Scott McGregor, a lifelong Republican, agrees with Julie Wright, a capital gains tax cut would spur investors to put more money into his business. We would use the money literally to invest and also invest in the human capital.