-Regaining ProsperityStephen Moore

The Greatest Story Never Told
S&P 500: Nominal vs. Real Price Appreciation, semi-log, Jan-66 = 100
1 0000 1 0000

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

1 000

1 000

1 00

1 00

1 0 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

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Tax Cuts Attract Capital

Net Inflow of Capital 1970-81 -$650 billion

Net Inflow of Capital 1983-2007 +$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

Real Federal Revenues and the Top Marginal Income Tax Rate

The Laffer Curve

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 $60,000 $60,477 $68,304

$50,000 2005 dollars

$40,000

$44,800 $41,383

$45,021

$30,000

$33,408

$20,000

$10,000

$0 1967 Source: Census Bureau 1987 Year 2005

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 Bulgaria Czech Republic Estonia Georgia Guernsey Hong Kong Iceland Iraq Jamaica Jersey Kazakhstan

10 10 15 21 12 20 15 35.7 15 25 20 10

Kyrgyzstan Latvia Lithuania Macedonia Mauritius Montenegro Mongolia Prednestrovie Slovakia Romania Russia Ukraine

10 25 27 10 15 15 10 10 19 16 13 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 276%

Carter 316%

Reagan -28%

Bush 4%

Clinton -19%

Bush 236%

Dollar at Record Lows
Dollar Index, 10 year view