U.S. Sen. Bob Corker, R-Tenn., last week urged his Congressional colleagues to adopt "a pro-growth tax reform plan" to help spur more economic activity and bring down the federal budget deficit. Lowering marginal tax rates and cutting the budget deficit will do more than short-term stimulus measures, be they spending increases or targetted tax cuts, Corker said.
But Corker acknowledged that cutting tax loopholes and simplifying America's tax code won't be simple. The biggest immediate economic benefactor from such a debate will likely be Washington, D.C., and its famous row of lobbyists and law firms on K street.
"Once you get to pro-growth tax reform on the corporate side, there will be the biggest hiring mechanism for K Street you've ever seen," Corker told the reporters and editors of the Chattanooga Times Free Press last week.
For now, Corker said the U.S. economy is benefiting by its comparative advantage over other, weaker countries and investors' flight to American treasurys, which pushed T blll rates last week to near- historic lows.
"Every other place in the world right now is experiencing difficulties," he said. "Right now, we're the least Ugly Duckling and therefore our securities and treasurys are trading at lows."