CONSERVATIVE PRINCIPLES

Since economies grow fastest when government interferes least, public policy should allow the private sector the greatest leeway for improving efficiency and spurring innovation.
The freedom to use one's labor and capital as one pleases while respecting the equal freedom of others to do the same produces the greatest economic good for everyone at the least cost to society. Government plays a facilitating role in the growth of an economy. However, beyond these core functions, federal fiscal and monetary policies should be as economically neutral as possible. In addition, all levels of government should focus on only those programs that are constitutionally within their purview and provide goods and services that cannot or should not be produced by the private sector, such as a justice system and national defense.

Government should not try to pick economic "winners and losers," nor should it pursue policies to reallocate income and wealth.

The private, competitive marketplace does a much better job of allocating resources than government does. If a company fails to use its capital in a way that creates value for its customers and investors, customers go elsewhere and investment follows sales. The same is true for wealthy families; This is why the Forbes list of the top 400 wealthiest individuals bears little resemblance to the same list 20 years ago. Free and open markets reward thos who enhance economic well-being and strip resources from those who do not.

The tax system should be simple--with tax rates as low and flat as possible and with no income taxed more than one time--and taxes should be collected to finance needed government programs, not for social engineering.

One important way that government can encourage stronger economic growth is to make sure the federal tax code is simple and encourages savings, investment, and work. Nobody should need to hire high-priced accountants and spend hundreds of hours each year just to pay federal income taxes. Moreover, millions of people making decisions about their own lives yields better social and economic outcomes for everyone than a few politicians trying to engineer everyone else's lives.

Tax competition among nations is a powerful liberalizing force in the world economy. Governments are much more likely to adopt good tax policy--and much less likely to increase tax burdens--when politicians understand that labor and capital can escape to jurisdiction with pro growth fiscal policy.

Tax competition is also a vital component in the battle for fundamental reform since it pressures policymakers to lower tax rates and reduce double-taxation of saving and investment. Regrettably, uncompetitive high-tax nations do not like tax competition and are working through international bureaucracies such as the Organization for Economic Co-operation and Development (OECD) and European Union (EU) to pursue tax harmonization policies that would hinder the flow of jobs and capital to low-tax jurisdictions.

Vigorous international trade enhances domestic economic growth, especially when that trade is free of tariffs and regulations that reduce the variety and volume of foreign goods and services.

Free trade helps economic growth by pressing domestic producers to improve their products and reducing their operating costs. It provides consumers with a wider array of products and services at lower prices than would otherwise prevail in the absence of free trade. Thus, it is emblematic of the benefits that everyone receives from open and competitive markets; more choices and enhanced economic well-being.

A dynamic economy is fueled by a vibrant and innovative workforce. Labor laws should not constrain workers or employers in a growing and changing work environment, but should advance freedom and accountability to provide the greatest opportunities for increasing productivity.

Employers and workers should have as much flexibility as possible to create a workplace that is productive and rewarding. U.S. labor laws, written in the 1930's, should reflect the dramatic changes in the economy and the workforce that have occurred since then and give workers and employers the ability to respond to these and future changes. At the same time, labor law should ensure that unions serve the interests of workers. Workers benefit when unions are strictly accountable to the men and women whom they seek to represent.