Evan Bayh Is 100% Correct in the Next Move for the Dems

I hope Obama got a copy of this editorial and will paste it up on the wall if he will do anything other than lose more seats in 2012.

First, we have more than a communications problem — the public heard us but disagreed with our approach. Democrats need not reassess our goals for America, but we need to seriously rethink how to reach them. 

Second, don’t blame the voters. They aren’t stupid or addled by fear. They are skeptical about government efficacy, worried about the deficit and angry that Democrats placed other priorities above their main concern: economic growth. 

So, in the near term, every policy must be viewed through a single prism: does it help the economy grow? 

A good place to start would be tax reform. Get rates down to make American businesses globally competitive. Reward savings and investment. Simplify the code to reduce compliance costs and broaden the base. In 1986, this approach attracted bipartisan support and fostered growth. 

If Obama does what Bayh suggests he will win a second term pretty handily. The idea that our competitors are paying a tax rate far below us is ludicrous. I think companies waste far too much time trying to get out of paying taxes or keeping their cash overseas instead of bringing them home in order to avoid taxation.  If Obama came out with a bipartisan tax reform plan it would be a winner any way you slice it.

Let's say he slashed corporate taxes in half, allowed companies to repatriate their overseas cash tax free, and then doubled the R&D tax credit it would create jobs in a hurry. Then you add some trade agreements to this mix with maybe South Korea, Panama, and Colombia at first you would ramp up exports. The South Korean one alone would be worth billions to our high tech companies.

In fact if Obama really wanted a lasting legacy he would go all out to make America into the Germany of our region. The Germans are making a bundle from exports to emerging economies in Eastern Europe. America could do the exact same thing with Central and South America. The idea of an America/Brazil axis that improves the standard of living for South and Central America would be huge. Just allying ourselves closely with Brazil where they will supply our oil in exchange for our technology, retailing and manufacturing would be a great idea.