Sarah Palin's First Hundred Days*
By Arnold Kling
She comes to office in January of 2013 with three priorities in economic policy. These are restoring the health of the private nonfinancial sector, putting entitlements on a sustainable path, and reversing the trend toward centralization of power.
1. A tax bill eliminates the corporate income tax and the employer portion of the payroll tax. It eliminates the tax deductibility of mortgage interest and employer contributions for health insurance.
2. An entitlement reform bill limits Federal spending on health care and social security to 10 percent of GDP, using these proposals or some equivalent.
3. Obamacare and Dodd-Frank are repealed. In health care, a voucher system is designed to subsidize people who are very poor and/or very ill. FHA, Freddie Mac, and Fannie Mae will have their maximum loan limits reduced to zero over a period of three years, phasing out those agencies. Financial reform will consist of requiring financial institutions above a certain size to have private partners with substantial personal equity in the institution. Banks operate more safely when they are partnerships than when they are public companies.
*Please keep in mind that I composed this post in my head while riding my bicycle on this very warm day. I am not responsible for any hallucinations that might be attributable to heat stroke.