Congressional Democrats propose greater federal control of the economy

Last week, congressional Democrats released their economic agenda, which they have dubbed “A Better Deal.” It’s a not-so-subtle rebuff of House Republican’s “A Better Way” plan, which was unveiled last year. The Democrats’ apparent goal was to seize the mantle of economic populism and paint a clear contrast with the Republicans. In the process of doing so, they put together an economic agenda that should be greatly concerning to anyone who wishes to scale back Washington’s control of the economy and create new jobs through growth and entrepreneurism.

While the GOP proposal focused on removing excessive regulatory and tax barriers in order to spur across-the-board economic growth, the Democrats have offered a hodgepodge of targeted tax breaks coupled with a crackdown on specific companies they don’t like. It’s a stark contrast with House Republicans. On one hand is a plan designed to create a more hospitable climate for all job creators and entrepreneurs; on the other hand, is a misguided attempt to micromanage the economy and pick winners and losers.

For instance, the Republicans offered fundamental tax reform as a path to create jobs and stimulate economic growth. That means lower rates for individuals and businesses of all sizes, fewer tax credits, deductions and loopholes, and a dramatic reduction in complexity that would make April 15 far less painful for everyday Americans. The Democrats, by contrast, believe they can create new jobs by putting taxpayer dollars toward developing new technical training programs, putting the federal government in control of determining “fair work schedules,” and providing additional funding for community colleges - activities anchored in government intrusion rather than successful economic outcomes.

The document doesn’t stop at merely incentivizing or discouraging certain types of economic behavior. “A Better Deal” would take an aggressive approach to intervening in the economy to stop specific business activities such as corporate mergers. And without economic evidence to back their cause, this would appear to be little more than a politically motivated appeal to economic populism.

Read more at The Hill