Murdock: Post-Brown, GOP needs positive agenda

Congressional Republicans are right to savor Senator-elect Scott Brown's stunning victory last Tuesday. Democrat Martha Coakley's self-destructive gaffes notwithstanding, conservative Republican Brown's formidable 52 percent to 47 percent triumph is akin to Democratic Rep. Barney Frank surfacing in Salt Lake City and, three weeks later, zooming past a pro-market entrepreneur right into the Senate.

Massachusetts voters embraced limited government, fiscal discipline, lighter taxes, and tougher treatment of terrorists. Republicans should enjoy this moment and thank Brown for reminding the GOP of how to run a winning campaign.

Once the high fives and hoisting of beer glasses have abated, however, Congressional Republicans should develop a coherent legislative agenda and promote it throughout this election year. If President Obama and other stunned Democrats help Republicans implement these objectives, splendid. But if they cling to big-government "solutions," Republicans should use this policy-shopping list like a latter-day Contract with America, which helped Congressional Republicans capture the House in 1994.

Let's call this 21st Century document Agenda 21. It should include these items:

-- Health care: Brown's win seems to kill ObamaCare as we know it. Instead, Republicans should coalesce around patient-centered reforms, including voluntary, universal, tax-preferred Health Savings Accounts. Americans should be free to buy health insurance across state lines, which will boost competition and cut costs. Uninsured citizens ineligible for private or public assistance should receive Health Stamps. Like Food Stamps, such an affluence-tested subsidy would help them choose and purchase basic, private coverage, with government furnishing money, not micromanagement. Medical-malpractice reform also would reduce needless and expensive diagnoses and treatments designed to combat lawyers rather than diseases.

-- No more Mr. Nice Guy on terrorism: America's Islamofascist enemies should be barred from civilian courts. Cancel the planned Manhattan trial of Khalid Sheik Mohammed and his fellow al-Qaeda mass murderers. Guantanamo should remain open until al-Qaeda is crushed like a quail egg beneath a steamroller. Enhanced interrogation -- including water boarding -- must remain in America's anti-terrorism arsenal. The Nigerian crotch bomber, who nearly exploded a passenger jet over Detroit on Christmas Day, should experience this policy firsthand.

-- Fiscal discipline. Massachusetts voters gagged at Team Obama's relentless outlays and this fiscal year's $1.4 trillion federal deficit. Republicans should fight for a two-year freeze in overall federal expenditures. Republican legislators should cut federal civilian salaries, including their own, by 10 percent. The GOP also should declare a policy of zero tolerance on earmarks.

-- Tax relief: According to Americans for Tax Reform, Washington Democrats have enacted or proposed some $2.1 trillion in tax hikes since President Obama's inauguration. During a severe economic slump, these include $858.45 billion in taxes that would hit families earning less than $250,000, breaking Obama's solemn promise.

The GOP should offer a dramatic alternative: An optional flat income tax, ideally at 15 percent, would let Americans file their tax returns on a simple postcard. Taxpayers who like loopholes and deductions could keep them under today's U.S. Tax Code. The Death Tax, reduced to 0 percent this year, should stay dead forever. To boost competitiveness and growth, America's 39.1 percent combined federal and state corporate tax should be below 26.3 percent, the OECD average. Also, let companies write off their capital investments immediately.

-- Innovation: The Tax-free Patent Act would let any new U.S. Patent recipient produce and market as many such patented items as possible, free of federal tax for 10 years. This would unleash a stampede of innovation, unforeseen goods and services, and jobs, jobs, jobs.

-- School choice: Obama and Congressional Democrats last year threw Washington's low-income black kids under the school bus with the teachers' unions at the wheel. Republicans should restore D.C.'s school voucher program with all deliberate speed.

Republicans should introduce these measures in Congress throughout the year and invite nervous Democrats to join them. If they do, America will prosper. If not, Republicans will meet Democrats at the polls on November 2 and let voters choose between these two competing visions.

(Deroy Murdock is a columnist with Scripps Howard News Service and a media fellow with the Hoover Institution on War, Revolution and Peace at Stanford University. E-mail him at deroy.Murdock(at)gmail.com)

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Tax-Free Patent Act

I'm a fan and heartily endorse five of the six bullet points in "After Big Win, GOP Must Act." But I strongly urge you to drop the "Tax-Free Patent Act" idea. The economic distortions that would result from tying tax breaks to whether a product has patented content would largely compromise and possibly outweigh any positive effects.

As a retired patent lawyer, I can tell you that a product's coverage by a patent is a poor proxy for how innovative that product is. Moreover, while the patent system has a positive effect on innovation, it is an extremely blunt instrument: although it encourages innovation in many areas, it stifles it in others. I fear that attaching tax consequences to inventors' patenting decisions will tend to exacerbate the latter tendency. There are more-effective ways to encourage innovation.

I urge you to drop advocacy of that idea; if you ever have occasion to study the patent system more deeply, you will find your position on this issue an embarrassment.

Feel free to contact me if you want a fuller explanation.

Deroy's off-base on many proposals

As noted by JHB, Deroy's Tax-Free Patent Act is based more on ideology than a thorough grounding in facts, economic analysis, or empirical research. Same goes for the rest of his nutty proposals.

When will the neo-cons get over their baseless passion for tax cuts? They do not grow the economy - hasn't worked in the past, won't work in the future. One might be tempted to speculate that they're just greedy, and have no real interest in helping the rest of America back on its feet. Investing in our infrastructure is the best way to spur growth and create wealth.

As for school choice, why would a fiscal conservative want to throw good money after bad? These programs haven't improved the achievement of the kids who get them in any significant kind of way, and they sure as heck haven't exercised the competitive pressure on public schools that free marketeers promised. Why bother? Do something that works instead, so the rest of us can enjoy the fiscal benefits of fewer drop-outs and more graduates in good jobs, paying their share of taxes.

As for terrorism, when we abandon our commitment to human rights and the rule of law, we waive our moral leadership and put our troops at greater risk. Is that the road Deroy wants to take us down?

Any experts out there on health care, insurance, and how well food stamps meet the nutrition needs of those who qualify? I'd be interested in hearing a fact-based analysis of Deroy's "health stamp" proposal.

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