As long as we're focused on spending, there are only two ways to do that: One is spend less, and Democrats have no solutions for that. Or we have pro-growth policies that make the economy grow so the dead-weight cost of government becomes a smaller percentage of the economy and therefore less expensive.
I know the activists I deal with, we sort of try and check each other to make sure that we haven't gone native, that you come to Washington thinking it's a cesspool, you don't want to end up thinking it's really a hot tub and getting used to it. So that's something one has to keep an eye on all the time.
We have to have a conversation about whether Obama's plan to increase spending to occupy Afghanistan helps make America a safer country, or not. I think at some point, we may decide that we don't have to have that size military and cost footprint in the country. You look at what you want to accomplish, how many soldiers you need.
Twenty-five years ago, I created the Taxpayer Protection Pledge at the federal level. Then I brought it to the state and local level. About 97 percent of the Republicans in the House and 85 percent in the Senate have signed on, and the number of candidates who have taken the pledge is even higher. It's become a party position.
Well, certainly the Democrats have been arguing to raise the capital gains tax on all Americans. Obama says he wants to do that. That would slow down economic growth. It's not necessarily helpful to the economy. Every time we've cut the capital gains tax, the economy has grown. Whenever we raise the capital gains tax, it's been damaged.
Obama wants to take the individual small business tax to 44 percent, and the corporate rate - he says - down to 28 percent or whatever. But that really damages the small businesses. And it doesn't make us competitive. You got to take them both down to 20, because state and local corporate taxes are 5 percent.
Obama has been perhaps the most partisan President since Truman. He hasn't learned to be civil - note his insulting speech to Paul Ryan, who did us the courtesy of scoring a budget. The president has to talk to Republicans when it comes to the debt ceiling. He has reached the debt ceiling before anyone expected.
As more and more Americans own shares of stock, more and more Americans understand that taxing businesses is taxing them. Regulating businesses is taxing them. They ought to be thinking long-term about their ownership, not just their income, and that they should pay taxes on capital, as well as taxes on labor.