- JANUARY 14, 2012
‘Supply-Sider’ for the Working Man
Mitt Romney’s conservative rival Rick Santorum wants to grow the economy with tax breaks for manufacturing—and babies.
‘I’m someone who believes that making things creates wealth,” says Rick Santorum. It is primary day in New Hampshire, and the former Pennsylvania senator and current presidential candidate is describing his plan to slash corporate tax rates. To encourage companies to make things, he would completely eliminate the federal income tax on manufacturers. For all other businesses, the rate would be cut in half, to 17.5% from 35%.
Mr. Santorum also believes that making babies creates wealth. It’s very difficult to grow an economy with a shrinking population, he says, pointing to the “demographic winter in Europe” as a cause of that region’s troubles. To help avoid that fate in the U.S., he wants to triple the per-child tax credit and also cut individual tax rates.
In a still-crowded field of non-Romneys trying to compete for the Republican nomination, Mr. Santorum could emerge in the Jan. 21 South Carolina primary as the man who can bring together the old Reagan coalition. A champion of cultural conservatives with a blue-collar background, he is also making the case for deep cuts in federal spending. His credibility on this last issue derives from the political price he paid for being an early promoter of entitlement reform.
At Mastricola Elementary School in Merrimack, a wise voter suggests that Mr. Santorum should push even harder for growth with a flatter tax system that applies equally to everyone. Mr. Santorum is cheerful but gives no indication he’ll take the advice.
With little money in his campaign account, Republican presidential candidate Rick Santorum has used a socially conservative message is still working to show he can capitalize on his early success. Danny Yadron has details on Campaign Journal. (more…)