Forbes Endorses GiulianiMike Rappaport

Steve Forbes endorses Rudy Giuliani based in part on the latter’s fiscal conservatism.  This should provide a big boost to Giuliani among economic conservatives:

Less well known is the mayor’sfiscal record. Nonetheless, conservatives will find it impressive. Hebuilt New York’s resurgence not just on fundamental police work, butalso on a foundation of fiscal discipline. He cut taxes and the size ofgovernment and turned an inherited deficit into a multibillion dollarsurplus.

In his first budget address Mr.Giuliani explained that he would “cut taxes to attract jobs so ourpeople can work.” While lots of politicians make promises about cuttingtaxes Mr. Giuliani delivered, overcoming the initial resistance of theoverwhelmingly Democratic City Council. He ultimately prevailed 23times, including cuts in sales, personal income, commercial rent andhotel occupancy taxes. He understood that these taxes were not revenueproducers, but counterproductive job killers.

When he left office after eightyears, New Yorkers had saved over $9 billion, while enjoying theirlowest tax burden in decades. The private sector, which had beenhemorrhaging hundreds of thousands of jobs in the years before he tookoffice, produced over 423,000 new jobs. Meanwhile the unemployment ratewas cut in half. Businesses responded to Mr. Giuliani’s reforms byreturning to the center of city life.

So when he talks about his beliefin supply-side economics, its not just theory, it’s a plan he hasalready succeeded at putting into action. He’s seen the results ofsupply-side economics first hand–higher revenues from lower taxes.

Mr. Giuliani set out to cut thesize of city government, insisting that New York should live within itsmeans. New Yorkers saw their quality of life improve with moreeffective delivery of services while the bureaucratic ranks were beingthinned by nearly 20,000–a near 20% decrease in city headcount,excluding police officers and teachers. He increased the number of copsand teachers because he understood that public safety and qualityeducation are what we expect in return for our tax dollars, notpartisan job protection or union featherbedding. As mayor, he provedthat government can be smaller and smarter–more efficient and moreeffective.