What kind of election is shaping up this November? Larry Kudlow, eternal optimist, thinks that things are not shaping up too well for the Democrats. The door has been wide open, but the Democrats “haven’t been able to walk through it.”
And now President Bush seems to be regaining his stride with good news on the War and the federal budget. And the Democrats seem to be positioning themselves as the party of fear while the president is able to stand for hope.
Kudlow has a good idea on the Democrats’ proposal for an increase in the minimum wage.
The idea of a minimum-wage hike is gathering political steam, and most economists agree that wages can be set higher at the expense of businesses. But this also will mean unskilled workers will have to reach farther to grab hold of the lowest rungs of the economic ladder. However, there is a compromise. A modest minimum-wage increase could be coupled with tax cuts for both large and small companies. This would satisfy low-end workers who have been hurt by rising gas prices, and would also make business more competitive.
That’s a good idea, for US corporate taxation is beginning to look extremely high, with corporate income tax above 30 percent while emerging tigers like Ireland and Estonia have corporate tax rates down in the low teens. If Democrats insist on making US companies and workers less competitive, at least Republicans can take a stand to mitigate the damage.
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