Mona Charen starts her latest column with
If Mitt Romney is elected and secures Republican control of both houses of Congress, the U.S. could be poised for a vertiginous economic snapback.
Vertiginous is not a word that is used in casual conversation at the kitchen table concerning paying the bills and getting a job or keeping your job. According to Bing online dictionary the word means dizzying: causing dizziness, especially because of being very high. This seems like what the effect will be when Mitt Romney wins the election.
The main point of her column is reached in her final paragraphs.
Even without tax reform, Mitt Romney and the Republicans could jumpstart an economic resurgence if they did just three things: 1) repeal Obamacare, 2) repeal Dodd/Frank and 3) and reverse the Obama policy of hindering domestic energy production.
As Walter Russell Mead documents in a fascinating series in the American Interest, the United States stands poised to become the world’s largest producer of fossil fuels. “The energy abundance that helped propel the United States to global leadership … is back; if the energy revolution now taking shape lives up to its full potential, we are headed into a new century in which the location of the world’s energy resources and the structure of the world’s energy trade support American affluence at home and power abroad.”
But it will require a president not ideologically blinkered by a ruinous commitment to “green energy.”
U.S. businesses are sitting on an estimated $2 trillion in liquid assets. They’ve been frightened into inaction, waiting for a better climate. It may be at hand.
It’s not realistic to expect any major tax reform law to include rock-ribbed conservative cuts in all of the tax rates. They are more likely to be modest cuts by reaching a compromise between the Republicans and Democrats in the Senate and House, and it will take a long time to happen. US businesses will have more confidence in investing when their fears of Obamacare, Dodd-Frank, and the regulating burdens on domestic energy production are addressed. The uncertainty on taxes will only be about how the tax reform will look, and not about what direction the federal government is moving toward with respect to tax rates and loopholes removal.