The Motley Fool Discussion Boards
Retirement Discussions / Retire Early CampFIRE
|Subject: Obama's $5 Trillion Dollar Tax Cut Fiction||Date: 10/17/2012 12:50 PM|
|Author: MadCapitalist||Number: 649258 of 722076|
Obama's $5 Trillion Dollar Tax Cut Fiction
"As the nonpartisan economist and economic commentator Robert Samuelson writes, the $5 trillion tax cut figure is "a fiction" to which most in the media have "given a pass." Obama's and his fellow Democrats' contention wildly ignores two major points.
First, the other half of the Romney tax plan would reduce deductions, credits, and other tax break, which, depending on how one looks at it, could be considered a tax increase.
Second, there is the demonstrated fact that lower taxes, by letting people and businesses keep more of their earnings and thus strengthening incentives to work and invest, tend to expand the economy, thereby stimulating much new tax revenue.
Furthermore, the $5 trillion figure includes the elimination of new taxes that would be imposed starting next year by the president's Affordable Care Act, or Obamacare, whose repeal Romney has promised to work for. Since we aren't paying those taxes yet, it's wrong to include them.
The Democrats' purpose in sticking the Romney tax plan with an enormous price tag is not only to suggest that it's more of the same old alleged Republican "welfare" for the rich, but also to claim it would balloon the deficit even further. Yet the bipartisan Simpson-Bowles Commission, which proposed a deficit-reduction plan two years ago, recommended the same basic tax principles: lower rates, fewer loopholes.
A study just released by the Tax Foundation concludes that economic growth resulting from Romney's tax cuts would restore 60 percent of the lost revenue, leaving only 40 percent of that revenue to be made up by eliminating and reducing tax breaks. Of course, those numbers can't be proved in advance. But they illustrate how thoughtless and misleading Obama's "$5 trillion tax cut" talking point really is."
You gotta love Democrats. They are so intellectually dishonest that it makes your head spin.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|