WHERE CONSERVATIVES STAND: OUR PRINCIPLES ON ASSURING ECONOMIC LIBERTY AND STRONG ECONOMIC GROWTH

America's economic success over the decades has been due to lower taxes and fewer government-inspired obstacles to enterprise than is true in most other countries. But that favorable climate for economic growth has been maintained only by vigilance in resisting politicians' temptation to micromanage the economy. Regrettably, many lawmakers are once again focused on moving money from one pocket to another and favoring one industry over another rather than on fostering growth. This must be resisted, and Washington must instead be urged to concentrate on creating the most favorable climate for enterprise by reducing and simplifying taxes, reducing red tape, and avoiding economic class warfare.

THE PRESIDENT'S FY 2006 BUDGET PROPOSES TO MAKE THE TAX CUTS PERMANENT

The President has appointed an Advisory Panel to suggest changes to the tax code. This panel is not expected to recommend junking the tax system and replacing it with a simple and fair flat tax, but reports indicate that it will propose policies that move in the right direction--though there is a small danger that it will endorse a European-style value-added tax (VAT) as an addition to the current system.

In a great disappointment, the Administration has proposed to increase the U.S. subsidy to the Organization for Economic Cooperation and Development, even though the Paris-based bureaucracy is pursuing policies such as global taxation that threaten American economic interests.