Bold Goals for 2025: Economic Freedom Amid Challenges | This Week's Economy Ep. 93
Federal and State Policy Reforms to Drive Growth, Despite Volatility
Hello Friends!
2025 brings new opportunities and challenges with President Trump’s return to office, a reshaped Congress, and bold initiatives from state legislatures. While President Trump’s leadership style often introduces volatility, the focus must remain on fostering economic freedom and prosperity through reduced government spending, lower taxes, and targeted deregulation.
In this episode of the Let People Prosper Show, I’ll outline the top reforms we need at both federal and state levels—from universal school choice to eliminating property taxes—to ensure progress, even in the face of political uncertainty. Watch the episode on YouTube below, listen to it on Apple Podcast or Spotify, and visit my website for more information.
FEDERAL REFORMS: ADDRESSING SPENDING & TAXES
Spending Cuts Amid Political Instability
Trump’s dynamic leadership may create volatility, but Congress must prioritize cutting wasteful spending. Federal spending remains unsustainable at nearly 25% of GDP, putting long-term economic health at risk. Clear, consistent fiscal discipline is essential, even amid shifting political dynamics.
Key Goal: Cut spending and cap any spending growth to a maximum of population growth plus inflation while addressing entitlement reform to stabilize deficits.
Making Tax Cuts Permanent
The 2017 Tax Cuts and Jobs Act created jobs and boosted the economy, but many provisions will expire this year. Congress must act to make these tax cuts permanent and explore broader reforms, such as shifting toward consumption-based taxation.
Tackling Inflation
To combat inflation, the Federal Reserve must reduce its bloated $7 trillion balance sheet and curb federal overspending. Policymakers must also resist short-term fixes and focus on sustainable, pro-growth solutions.
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STATES AS LABORATORIES OF COMPETITION
Universal School Choice Expansion
States like Arizona and Florida are leading the way with Education Savings Accounts (ESAs) and school choice programs. Expanding these reforms nationwide in 2025 can empower families and improve student outcomes through healthy competition. (Read more here on school choice legislation.)
Eliminating Property Taxes
Surplus revenues in Texas and other states provide a pathway to phase out burdensome property taxes. A surplus buydown strategy and spending limits tied to population growth and inflation can ensure sustainability. (Read more here on eliminating property taxes in Texas.)
Pro-Growth Tax Reforms
States like Kansas and Louisiana are making strides in tax competitiveness, but others must follow. Reducing corporate and personal income taxes while eliminating unnecessary regulations will strengthen economic freedom nationwide. (Read more here on state policy and tax reforms.)
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MANAGING VOLATILITY WHILE EMBRACING OPPORTUNITY
Trump’s Leadership Challenges
President Trump’s unpredictability can create short-term volatility in markets and policy implementation. However, focusing on the administration’s pro-growth agenda, including spending restraint and deregulation, can help mitigate risks and drive improvements.
Building on 2024 Successes
Policies like deregulatory efforts, universal school choice, and tax reform at the state level provide a foundation to build on in 2025. States can demonstrate resilience and innovation, even amid federal uncertainty.
The Need for Economic Freedom
Navigating political turbulence requires a steadfast commitment to free-market principles. Reducing government interference and empowering individuals can create a more stable and prosperous economy for all Americans.
While 2025 will bring its share of volatility, it also presents a chance to achieve significant reforms that advance economic freedom and prosperity. By focusing on sustainable fiscal policies, expanding school choice, and empowering states to lead as laboratories of competition, we can chart a path toward growth and opportunity.
Join me on The Let People Prosper Show as we tackle these critical issues and advocate for bold, practical solutions in the year ahead.
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