Forbes: Answer on Economy Is Not More Federal Money

Image: Forbes: Answer on Economy Is Not More Federal Money

Thursday, 09 Jan 2014 01:40 PM

By Wanda Carruthers

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Steve Forbes said the key to improving the U.S. economy is not "pouring in more federal money" to programs like President Barack Obama's newly-announced "Promise Zones."

"The key thing is not just pouring in more federal money. The key thing is reducing the tax burden, so people can rise up and do things in those areas," Forbes, editor of Forbes magazine and former presidential candidate, told Fox News' "America's Newsroom."

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President Barack Obama unveiled a plan Wednesday to establish San Antonio, Philadelphia, Los Angeles, southeastern Kentucky and Oklahoma's Choctaw Nation as "Promise Zones." The areas could receive tax incentives and grants for job creation, education, housing and crime-reduction.

Forbes explained the "Promise Zones" sound similar to "Enterprise Zones," promoted 30 years ago by former Housing Secretary Jack Kemp. He said the president's proposal was also similar to a plan recently announced by Kentucky Republican Sen. Rand Paul.

"The key thing is, will the president unveil something that goes beyond throwing more money on projects that really haven't worked in the past, and allow entrepreneurs to rise up and resurrect these areas," Forbes said.

Reducing the tax and regulatory burden was essential to "unleash the entrepreneurial energy" in the country, Forbes said.

"If you reduce the regulatory and tax burden on people, people do real things," he said.
Rather than identify five areas for "Promise Zones," Forbes suggested the president "make the whole USA a promise zone, in terms of real tax reform and other regulatory reforms."

Forbes was optimistic about the country's economic future. Barring a foreign or domestic crisis, he said the U.S. economy "should do well this year, compared to the last four or five years." He indicated the stock market has performed well, because "they sense that something finally is going to be a little better than we've had in recent times."

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