History shows that low taxes create prosperity
Re: “Are low taxes exacerbating the recession?” July 11
Those who contend that higher marginal tax rates can mitigate our economic difficulties overlook recent history.
In 1981, President Reagan inherited a similar recession, with 9.5 percent unemployment, 14 percent inflation, 19 percent interest rates, and stagnant 0.9 percent annual growth. From 1982-86, Reagan reduced the top marginal tax rate from 70 percent to 28 percent, corporate taxes by 15 percent, capital gains by 8 percent, and energy taxes by a third.
This resulted in: 96 months of mean 3.5 percent GDP growth, 3.8 percent inflation, 5.3 percent unemployment, 10 percent interest rates, and a doubling of government revenues from $686.6 billion to $1.2 trillion by 1989.
President Clinton adopted this approach, raising only the top marginal rate to 38.5 percent for deficit reduction. However, he offset this by reducing corporate taxes by 6 percent and capital gains by 12 percent. The results? Nearly identical economic growth.
The Reagan-Clinton approach resulted in 25 years of prosperity. Unfortunately, ideological myopia can make such solutions more difficult to perceive.
Mark E. Quartullo
Bowie
Obama gets no concessions from Palestinians
Re: “Obama, Netanyahu make nice, but conflicts remain,” July 7
After issuing the usual platitudes about protecting the security of Israel, and reminiscent of his presidential campaign, President Obama went about the usual exercise of wringing concessions from Israeli Prime Minister Netanyahu without being able — or willing — to do the same with Palestinian Authority President Mahmoud Abbas.
Abbas continues to be intransigent in declaring that Israel must depart from all territories acquired during its defensive wars against the Arabs, and insists the right of return must be given to all descendants of Arabs who left in 1948 during their attempt to destroy Israel. Not one word was said about the greater number of innocent Arab Jews who were forcibly driven out of Arab lands penniless.
Abbas is a clone of Yasir Arafat; his demands are not possible, despite the support of President Obama. If he fails to negotiate in good faith like Arafat did, there will not be a Palestinian Arab state.
Nelson Marans
Silver Spring
Simple solution to immigration quandary
My immigration reform plan will not take 2,400 pages to explain. First, inform all illegal immigrants that they have 48 hours to turn themselves in to Immigration and Customs Enforcement for processing a return to their country of origin.
Second, inform all illegal immigrants that the U.S. will never offer another blanket amnesty. This alone will remove one of the greatest incentives to illegally enter our country. We tried the amnesty thing 20 years ago and it did not work. If illegals don’t comply, explain that we will eventually find them and walk them across the border. If we can hire a half million people to complete the Census, we can hire enough to make this happen.
My apologies to all individuals who have followed the rules to become citizens. Thank you for wanting to become a member of the greatest country on Earth.
George J. Pitonyak
Kitty Hawk, N.C.
