In a move that makes eminent economic sense the Obama administration is set to ask Congress to reduce the corporate tax ratefrom 35% to 28%.  In doing so a number of so-called “loopholes” will be reduced or eliminated.

Reduce the rate and broaden the base?  Bingo!  That’s how to increase revenue.  That’s precisely the type of sound economic policy we’ve been looking for ever since President Regan’s sweeping tax overhaul in 1986.  Kudos to you Mr. President.

But wait.  Is President Obama speaking from both sides of his mouth?  On one hand he wants to raise revenue by cutting corporate rates yet he wants to increase individual rates paid by the “rich.”  Shame on you Mr. President.  With apologies to Cyndi Lauper we see your true colors shining through.

There is no doubting President Obama is a smart man.  He knows cutting the corporate tax rate makes economic sense.  So why does he want to raise rates paid by the “rich?”  The answer of course is populism.

Mr. President, leaders are not always liked.  They are not always the most popular.  Populist (dare we say Socialist) policies win elections but they don’t provide solutions.  Effective leadership isn’t about doing what’s popular – it’s about doing what needs to be done.