This has enabled us to become more prosperous in the past two decades. But the bad news is that other nations are beginning to catch up. Germany and Japan have reduced tax rates, and other countries are looking to follow that example. This means that we will have to lower our tax rates if we want to remain the No. 1 economy in the world. Lower tax rates also would be a good insurance policy for the economy.
Some economic analysts fear that our economy is beginning to slip into recession.
And if that is the case, all the more reason to lower tax rates so that people have a greater incentive to work, save and invest. Last but not least, we should cut taxes as part of a long-term strategy to junk the internal revenue code and replace it with a simple and fair flat tax. The two main elements of the Bush tax plan death tax repeal and tax rate reductions are important steps in the right direction. This debate, after all, is not only about the tax burden. It also is about whether we can replace a loophole-riddled, corrupt tax code with a system that treats all taxpayers equally and gets the IRS out of our daily lives.