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Thursday, January 14, 2016

From The Economist Espresso: Skipping economics: the Republican race

The Economist

Contenders and no-hopers meet today in North Charleston, South Carolina, for their sixth primary debate, this time on the economy. Questions abound. Ted Cruz (the likely winner of the nomination, many think) proposes a 10% flat tax, with no mention of cutting Social Security or Medicare. Marco Rubio would abolish all capital-gains and dividend taxes. Both make Donald Trump, who would tax income at 25% and investment income at 20%, look like a tribune of the people. Don’t expect economic enlightenment: look instead at who attacks whom. Mr Trump’s supporters like it when he mocks Jeb Bush, but the establishment champion’s poll ratings are so lowly that it’s hardly worth it. Instead, Mr Trump may talk about the pressing economic need to prevent America from turning into Canada, which—to the tune of “Born in the USA”—he highlights as the (supposedly disqualifying) land of Mr Cruz’s birth.

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