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-Regaining Prosperity-

Stephen Moore
The Greatest Story Never Told
S&P 500: Nominal vs. Real Price Appreciation, semi-log, Jan-66 = 100

10000 10000
S&P 500
S&P 500, Inflation-Adjusted

1000 1000

100 100

10 10
60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08
Tax Cuts Attract Capital

Net Inflow of Capital Net Inflow of Capital


1970-81 1983-2007
-$650 billion +$5.25 trillion

Source: Bureau of Economic Analysis, Table 1.1: International Transactions


Share the Wealth?
Top Marginal Income Tax Rates and Income Tax Share for the Top 1% of Earners
1970-2006

Top Marginal Income Tax


Rate

Tax Share
Tax Rate

Top 1 Percent Income Tax


Share

Source: IRS
Rich Pay More Than Their Fair Share
2007 Income and Income Tax Shares

40%

Income
23%
Income Tax

12%

3%

Top 1% Bottom 50%


The Laffer Curve
Tax Rate

Tax Revenue
The Laffer Curve
Real Federal Revenues and the Top Marginal Income Tax
Rate
Inflation Rate, 1970-2008
Show Me The Money?
Year on Year Monetary Base Growth, bi-weekly, percent, Through December 2008
10 Year Treasury Note Yield
October 1955 to February 2009
Education and Medical Prices Skyrocket While Import Prices Drop
CPI, Percent Change, 2000 to 2007
Worker Well-Being
The Ever-Improving American Dream
Upper and Lower Income Limits for Middle Class Families

$80,000

Lower Limit for the Middle Class


$70,000

Upper Limit for the Middle Class $68,304

$60,000
$60,477

$50,000
2005 dollars

$44,800 $45,021
$40,000
$41,383

$30,000 $33,408

$20,000

$10,000

$0
1967 1987 2005
Year
Source: Census Bureau
Number of Years It Took for Major Technologies to
Reach 50% of American Homes
Guns and Butter: Discretionary Spending Explodes
Where Your Federal Tax Dollar Goes
The Coming Tax Increase
Revenues as a Share of GDP

Source: Free Enterprise Fund


Hog Wild Spending
Federal Outlays, 2001-2008
Payroll Employment Has Fully Recovered
Millions of Jobs, Total Nonfarm Employment, Seasonally Adjusted, January 2000 to August 2007
The World Really is Flat
Flat Tax Nations and Their Rates

Albania 10 Kyrgyzstan 10
Bulgaria 10 Latvia 25
Czech Republic 15 Lithuania 27
Estonia 21 Macedonia 10
Georgia 12 Mauritius 15
Guernsey 20 Montenegro 15
Hong Kong 15 Mongolia 10
Iceland 35.7 Prednestrovie 10
Iraq 15 Slovakia 19
Jamaica 25 Romania 16
Jersey 20 Russia 13
Kazakhstan 10 Ukraine 15

Source: Center for Freedom and Prosperity


The Hillary Clinton Tax Form
More 18 to 34 Year Olds Believe in UFOs
Than Social Security
How to Create and End an Oil Crisis
Price Per Barrel of Oil in 2007 Dollars
Free Countries are Wealthier and Healthier
Future Threats to Prosperity
Tax Rates Under Obama
High Corporate Taxes Make the U.S. Uncompetitive
Real Federal Funds Rate Already Low and Falling
January 1990 – June 2008
Gold Shows Dollar Weakness and Inflation Risk
January 1970 – November 2008

Nixon/Ford Carter Reagan Bush Clinton Bush


276% 316% -28% 4% -19% 236%
Dollar at Record Lows
Dollar Index, 10 year view