Following Friday's disappointing jobs report, Larry Kudlow says we need to put economic policy through some shock therapy to help kickstart job growth.
But the Bush tax cuts will not do the job alone. Full-fledged flat-tax reform — of the sort embodied in the best of the Bowles-Simpson fiscal recommendations — will be necessary for full-fledged economic recovery.
Lowering the top personal and corporate tax rates will increase after-tax returns for work and investment. That’s the kind of strong new incentive that will be necessary to ignite rapid economic growth in the post-meltdown period. Broaden the tax base and lower marginal rates across-the-board.
SEE ALSO: A more upbeat take on the jobs market from Lakshman Achuthan at the Economic Cycle Research Institute, who says now is the time for the unemployed to jump back into the pool.