Why Conservatives Should Emphasize Living Costs and Affordability in Their Platform

Conservatives and members of the GOP have long emphasized the importance of reducing living costs and increasing affordability through various policy initiatives like deregulation. However, the effective implementation of such strategies requires careful consideration and clear evidence of their efficacy. This article will explore why emphasizing living costs and affordability should remain a critical aspect of the GOP platform and how tax reductions can significantly impact affordability.

The GOP's Long-standing Focused on Deregulation for Affordability

The GOP has been advocating for living cost and affordability improvements through deregulation for over 40 years. Deregulation efforts are meant to reduce barriers that increase the cost of goods and services, particularly in sectors like housing and healthcare. The argument is that by reducing regulatory burdens, businesses can operate more efficiently, leading to lower prices for consumers. For example, deregulation can reduce the cost of building permits, streamline zoning laws, and remove unnecessary licensing requirements that increase the cost of healthcare.

Is Deregulation the Only Way?

Despite decades of focused efforts, there is scarce empirical evidence that these deregulatory measures have resulted in the desired outcomes. Housing and healthcare costs continue to rise, suggesting that other factors beyond regulation are driving up these costs. For instance, the high cost of living in many urban areas is more related to housing market dynamics, land use policies, and economic inequality rather than regulatory measures alone.

Alternative and More Direct Approaches

A more effective and direct approach to making living costs and services more affordable is through direct financial assistance and structural policy changes. One such method is providing subsidies, grants, and tax reductions. By reducing the overall tax burden on individuals, families can retain more of their income, which can translate into significant financial relief.

Impact of Tax Cuts on Affordability

For the average American family, their tax burden can be one of the most significant and intractable expenses. Consider the hypothetical scenario of a 50% reduction in income taxes. Such a reduction can have profound effects on affordability. In the case of home mortgages, a substantial tax break could potentially cover the mortgage payments for a considerable period. For instance, a 50% income tax reduction could pay the mortgage for 14 months, effectively providing financial relief for the family.

Moreover, a reduction in sales taxes could also significantly impact affordability. If an individual spends $300 at Home Depot, the sales tax could be around $30. This could potentially be saved or used to reduce debt, providing immediate financial stability. A targeted 50% reduction in sales taxes could have a similar impact, freeing up that $30 to be used elsewhere.

To summarize, a well-drafted policy that focuses on reducing taxes and providing direct financial assistance can have a much more tangible and immediate impact on affordability compared to deregulatory measures that have proven to be less effective over time.

Conclusion

Both deregulation and direct financial assistance have their merits, but evidence suggests that the latter is more effective in reducing living costs and making essential services more affordable. By prioritizing tax cuts and subsidies, the GOP can help advance a more affordable and prosperous society for all Americans, not just the wealthy.