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Last week on June 14, President Obama announced his economic plan to finally bring economic recovery and growth to the U.S. in a much ballyhooed address in Cleveland.
So lets examine the two fundamentally different visions and see which can produce strong sustained growth, pay down our long term debt, and generate good, middle class jobs.
Under President Obamas plan, on January 1 of next year the top tax rates of virtually every major federal tax will increase, as already enacted under current law. That is because the tax increases of Obamacare would go into effect, and the Bush tax cuts would expire, which Obama refuses to renew for singles making over $200,000 a year, and couples making over $250,000. The English translation of that target for the tax increases is the nations small businesses, job creators and investors.
As a result, with the Bush tax cuts just expiring for these targeted taxpayers, the top 2 income tax rates would jump by nearly 20%, the capital gains tax would soar by nearly 60%, the tax on dividends would nearly triple, the Medicare payroll tax would skyrocket by 62% for the above disfavored taxpayers, and the top death tax rate would rise from the grave to 55%.
That is all on top of the highest corporate tax rate in the industrialized world at nearly 40%
How is this going to produce strong sustained growth and generate good middle class jobs? It is going to do just the opposite, as the multiple tax rate increases would only sharply reduce the incentive for productive activities, such as savings, investment, business expansion, business start ups, and job creation. That will simply encourage even more capital flight from the U.S., and a continued capital strike by the capital that remains. All this translates into yet another recession next year, with fewer jobs, rising unemployment, and soaring deficits and debt.
The alternative GOP vision is spelled out in the budget produced by House Budget Committee Chairman Paul Ryan, which was passed by the Republican controlled House, and is supported by Romney. That includes individual tax reform closing loopholes and reducing tax rates to 25% for couples earning over $100,000 per year, and 10% for those making less, and corporate tax reform slashing crony capitalist loopholes and reducing the 35% federal rate to an internationally competitive 25%. And then the aforementioned Obama tax increases would be repealed. CBO has scored these tax reforms as restoring federal revenues to their long term, postwar, historical average from 1948 to 2008 of 18.5% of GDP.The reduced tax rates under such reform would produce exactly the opposite results of Obamas tax rate increases, increasing incentives for all of the above productive activities. That would restore traditional American prosperity and job creation as a result.
...another recession next year, with fewer jobs, rising unemployment, and soaring deficits and debt
...increasing incentives for all of the above productive activities. That would restore traditional American prosperity and job creation as a result.
What's the Republican counter-proposal? I'm sure there's a compromise available.
What's the Republican counter-proposal? I'm sure there's a compromise available.
rather than commenting on the thread title, you might want to read the entire OP, which answers that question.
Compromise? Would a "slower economic decline" be more agreeable to you?What's the Republican counter-proposal? I'm sure there's a compromise available.
Where's the evidence that Romney supports even one bit of that?More spending, higher taxes, more bailouts. More debt, unsustainable entitlement programs, laughingstock around the world.
Or
Less spending, lower taxes, no bailouts. Less deficit, debt, sustainable programs, more respect from our friends and enemies.
Don't understand why this is even close.
This isn't Obama's plan, it's the Bankers plan. Obama is just helping to implement it.
Romney is there to give you the illusion of "change" (Sound Familiar?)
Compromise? Would a "slower economic decline" be more agreeable to you?What's the Republican counter-proposal? I'm sure there's a compromise available.
"Here, eat this turd sandwich!"
"But I don't wanna' eat a turd sandwich!"
"Well, how bout we compromise and you only eat half a turd sandwich?"
"Oh ok, that sounds great!"
More spending, higher taxes, more bailouts. More debt, unsustainable entitlement programs, laughingstock around the world.
Or
Less spending, lower taxes, no bailouts. Less deficit, debt, sustainable programs, more respect from our friends and enemies.
Don't understand why this is even close.
More spending, higher taxes, more bailouts. More debt, unsustainable entitlement programs, laughingstock around the world.
Or
Less spending, lower taxes, no bailouts. Less deficit, debt, sustainable programs, more respect from our friends and enemies.
Don't understand why this is even close.
I'm not surprised. Have you really thought through both alternatives? Why not, just for fun, see if you can be the devils advocate of the choice you would make?
