Romney Tax Plan: Debt, Deficit, Unemploment and a Weak Economy

You know in the last few years and during this election a lot is being said about our country's debt and the deficits that pile up yearly. While Republicans seem intent on balancing the budget on the backs of working Americans and the poor one thing can easily be done that would save almost a trillion dollars over ten years and would help the economy as a whole. However, when you mention it you will get much howling and gnashing of teeth from Republicans. Yes, a simple solution to saving money and getting our economy on track is simply to let the Bush Tax Cuts on high-end earners expire.  
You do not have to take my word for it however. The non-partisan Congressional Budget Office has recently released a report that shows how America could easily have almost a trillion dollars in debt reduction over the next ten years:

The Congressional Budget Office's (CBO) new report shows that allowing President Bush's 2001 and 2003 income tax cuts on income over $250,000 to expire on schedule at the end of 2012 would save $823 billion in revenue and $127 billion on interest on the nation's debt, compared to permanently extending all of the Bush tax cuts.  Overall, this would mean $950 billion in ten-year deficit reduction, a significant step in the direction of fiscal stability.

http://www.offthechartsblog.or...

They even provided this chart which spells it out in terms even the Tea-Bagger mind can easily understand:

Photobucket

This comes on the heels of previously released information that shows that ending these cuts for high earners will not only bring down our debt but it will not hurt our economy in the short term. In fact, it would actually boost employment growth:

Prior CBO analysis showed the minimal economic risk this would pose in the short-term.  CBO previously concluded that extending only the so-called "middle class" tax cuts on income below $250,000, instead of extending all of the tax cuts, would "be more cost-effective in boosting output and employment in the short run because the higher-income households that would probably spend a smaller fraction of any increase in their after-tax income would receive a smaller share of the reduction in taxes (relative to current law)."

Now, contrast that with the Romney plan which throws away another billion dollars to corporate America while asking middle-class and working Americans, the very folks who have been destroyed by the trickle-down policies of the last thirty years to pay for more corporate welfare:

Even with these very generous assumptions, the nonpartisan Tax Policy Center found that Gov. Romney's plan does not add up without a significant net tax increase on households earning less than $200,000. The center concluded that in a single year, 2015, his plan would necessitate "a shift in the tax burden of roughly $86 billion from those making over $200,000 to those making less than that amount." That translates into an average tax increase of about $2,000 for middle-class families and $500 for all taxpayers with incomes under $200,000. Even with 20 percent lower rates, these families would pay higher taxes overall because of the elimination of tax deductions and credits.

Under the contours of the Romney plan, the only tax breaks that would be available to pay for this additional $1 trillion are those benefitting individuals and families with incomes under $200,000. That's because, as the Tax Policy Center found in its original study, entirely eliminating tax breaks benefitting high-income households isn't even enough to pay for Romney's tax rate cuts for those households, let alone tax cuts for corporations.

How big? The original Tax Policy Center study found that in a single year, 2015, Gov. Romney's plan would shift at least $86 billion of the tax burden from households with incomes over $200,000 to households with incomes below that level. The center estimates that in the same year, Gov. Romney's unpaid-for corporate tax cuts would cost $96 billion.[8] Therefore, the tax increases on the middle class that the center originally estimated-at least $2,000 for families and $500 for all taxpayers with incomes under $200,000-would likely be around twice as much if Gov. Romney's unpaid-for corporate tax cuts are taken into account.

http://www.americanprogressact...

And what about the impact on our economy? Will these tax cuts "pay for themselves" with economic growth? Sadly no:

But what about the Romney plan's promised effects on economic growth? As the Tax Policy Center writes in its original report, "the effects of tax rate reductions on the macroeconomy are likely to be small or even negative, at least, over the typical 10-year budget window."[10] Looking at Gov. Romney's tax plan for individuals, those researchers found that even under extremely optimistic estimates-using an approach developed by Romney economic advisor Greg Mankiw-Gov. Romney's tax rate cuts would not come close to paying for themselves: Middle-class families would still get a significant tax increase, albeit a smaller one. Cuts in corporate tax rates are estimated to have a similarly small impact on economic growth-not nearly enough to finance themselves.

In other words the Romney vision for America is the same old crap offered by Republicans for the last thirty years in a shiny new bag. Now, Romney hopes to set that bag on fire on our front porches. This vision offers nothing positive for America as a whole. In fact, it only offers more deficits, debt, and more Americans out of work. Far from a recovery, the Romney vision for America promises to finish the grim work of dimantling our country economically begun by George W. Bush.

Americans simply cannot afford Mitt Romney and the continued greed of his ilk.

Go to KY State Page
origin Blog: 
origin Author: 
Comments Count: 
0
Showing 0 comments