Prosperityand Capitalism

Stephen Moore

America’s Oil Boom

Reaganomics Vs. Obamanomics

Obama Jobless Recovery

Red States Vs Blue States

Growth States Vs Declining States

Texas - 1.1 Million Jobs CreatedRest of the U.S. - 350 Thousand Jobs

Lost

The Greatest Story Never Told

- 64 % + 1,500%

America’s Boom and Bust

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

5

10

15

20

25

30

35

40

45

Top Marginal Income Tax Rate Top 1% Income Tax ShareYear

Top

In

com

e T

ax S

hare

1%

In

com

e T

ax S

hare

“In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and

the soundest way to raise the revenues in the long run is to cut

the rates now.” - John F. Kennedy

Address to the Economic Club of New YorkDecember 14, 1962

Income tax rate

Capital Gains

Dividends

Death Tax

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

41%

24%

24%

40%

35%

15%

15%

35%Old Rate Obama Rate

TaxmageddonTax Rates Under Obama in 2013

Barack Obama Simplified tax form

Source: Internal Revenue Service, Statistics on Income, “Number of Returns, Shares of AGI and Total Income Tax, AGI Floor on Percentiles in Current and Constant Dollars, and Average Tax Rates,” Table 1. Available at: http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html

Past performance is no guarantee of future results.

Bottom 95 Percent Pays Less than Top 1 Percent

Rich Pay More Than Their Fair Share2010 Income and Income Tax Shares

Source: Internal Revenue Service, Statistics on Income, “Number of Returns, Shares of AGI and Total Income Tax, AGI Floor on Percentiles in Current and Constant Dollars, and Average Tax Rates,” Table 1. Available at: http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html

Past performance is no guarantee of future results.

Income Share Income Tax Share0

5

10

15

20

25

30

35

40

19

37

11

2

Top 1% Bottom 50%P

erc

en

t

The Laffer Curve

Normal Range

Prohibitive Range

100%

0%

Tax R

ate

Tax Revenue

Inflation Rate, 1950-2013

Past performance is no guarantee of future results. Source: http://research.stlouisfed.org/fred2/graph/?id=CPILFESL,

Past performance is no guarantee of future results. Source: Federal Reserve Bank of St. Louis, Monetary base Growth, Available at: http://research.stlouisfed.org/fred2/series/BASE

Helicopter BenYear on Year Monetary Base Growth, bi-weekly, percent, through June 2013

QE0

QE1

QE2

Source: http://research.stlouisfed.org/fred2/graph/?id=DGS10,# Past performance is no guarantee of future results.

10 -Year Treasury Note yield Jan 1960 to June 2013

real interest rate on 10-year U.S bondsJan 2003 to June 2013

Source: http://research.stlouisfed.org/fred2/graph/?id=DGS10,# Past performance is no guarantee of future results.

All Items Education Medical Care

Energy New Ve-hicles

Apparel Software Computers-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

24%

70%

44%50%

-5% -6%

-39%

-76%

Source: BLS

Education and Medical Prices Skyrocket While Import Prices Drop

CPI, Percent Change, 2000 to 2009

Past performance is no guarantee of future results.Bureau of Labor Statistics, Consumer Price Index, Available at: http://www.bls.gov/data/#prices

Worker Well-Being

Past performance is no guarantee of future results. Based on data from the Census Bureau and the Department of Labor.

Past performance is no guarantee of future results.

Number of Years It Took for Major Technologies to Reach 50% of American Homes

High Technology

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Defense Spending

Total Nondefense Spending (Discrestionary and Mandatory)

Guns and Butter: Federal Spending Explodes1995 – 2010

Past performance is no guarantee of future results.Source: Congressional Budget Office, Historical Budget Data, Available at: http://www.cbo.gov/

Nondefense

Defense

Billion

s o

f U

.S.

Dollars

Pissed Away15%

Down a Rat Hole24%

Sleaze8%

Corruption15%

Postage Stamps6%

Given to "Sup-porters"

19%

Tossed Down the Drain6%

Flushed Down a Toilet8%Chart Title

Source: IRS, GAO, BEA, BLS, CEA, JEC, ETC.

Where does your federal tax dollar go?

High Corporate Taxes Make the U.S. UncompetitiveU.S. Corporate Tax Rate v. Average for Developed Countries

Past performance is no guarantee of future results. Note: The bars are the average tax rate in the rest of the world.Source: OECD Tax Policy Analysis

1990 411991 401992 37.91993 381994 371995 371996 36.71997 36.71998 35.71999 34.82000 33.62001 32.52002 31.22003 30.72004 29.82005 28.62006 28.12007 27.62008 26.62009 26.292010 25.22011 25.12012 25.12013 25.1

25

30

35

40

45

Co

mb

ine

d C

entr

al

and

Sub

ce

ntr

al

Go

ve

rnm

ent

Co

rpo

rate

Ta

x R

ate

U.S. Corporate Tax Rate v. Average for Developed CountriesU.S. Combined Federal and State Tax Rate

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

20

25

30

35

40

45U.S. Corporate Tax Rate v. Average for Developed Countries

Co

mb

ine

d C

en

tra

l an

d S

ub

cen

tra

l Go

v-e

rnm

en

t Co

rpo

rate

Ta

x R

ate

U.S. Combined Federal and State Tax Rate

1970 1975 1980 1985 1990 1995 2000 2005 2012

Past performance is no guarantee of future results.

Gold PriceJanuary 1970 – January 2013

Reagan-28%

Bush4%

Clinton-19%

Bush 236%

Carter316%

Nixon/Ford276%

Obama 46%

Economic Freedom and Income

Source: EFW 2012, Exhibit 1.7.

Least Free Quartile

3rd Quartile 2nd Quartile Most Free Quartile

05,000

10,00015,00020,00025,00030,00035,00040,000

$5,188 $6,596

$16,957

$37,691

$25,062

$13,789

$6,404 $5,062

78.7

69.9

64.8

56.7

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Most Free Second Third Least Free

Life

Exp

ecta

ncy a

t Birth

, 20

05

G

DP

pe

r C

ap

ita,

PP

P, 2

00

5

(C

onsta

nt 2

00

0 Inte

rnatio

nal $

)

Life Expectancy

Source: Cato Institute and Fraser Institute, Economic Freedom of the World, 2007.

Economic Freedom Past performance is no guarantee of future results.

Free Countries are Wealthier and Healthier

Source: Federal Reserve Bank, Nominal Major Currencies Dollar Index Past performance is no guarantee of future results.

Dollar at Record LowsDollar Index, August 2000 – November 2012

2000-01 2001-01 2002-01 2003-01 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-0165

70

75

80

85

90

95

100

105

110

115

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Majo

r C

urr

en

cie

s D

ollar

Ind

ex N

um

ber

National Debt by President and Control of Congress

Source: http://advisorperspectives.com/dshort/updates/Debt-Taxes-and-Politics.php?federal-debt-to-gdp-politics-update

Actual vs. Expected unemployment rate:2009-2013 UNDER PRESIDENT OBAMA

Source: "The Job Impact of the American Recovery and Reinviestment Plan," 2009, president's Council of Economic Advisers; Bureau of Labor Statistics, Labor Department. Graphic: The Washington Post. Published Oct. 7, 2011

7.9%