Skip to main content
No. of Recommendations: 4
Dems keep saying that Romney/Ryan is not offering enough details...

I disagree.
The reason that people are asking for specifics is that the numbers simply do not add up.
Romney plan is to:
1. Increase Defense spending to 4% of GDP (currently it is 3.2% and we still have a war going on.)
2. Across the board 20% tax cut
3. Eliminate the Estate tax
4. Eliminate the capital gains tax
5. Make up for these goodies by eliminating some unnamed deductions, growing the economy, and cutting waste.
6. Making 12 million new jobs.

The specifics people are asking for are what are the deductions and what do you consider waste. The reason this is asked is that you either ware going to blow the Obama deficits out of the water, you are going to be draconian in the cuts to services, or you are going to have to eliminate very popular deductions (and probably some combination of all 3).
I have no problem with eliminating the home interest deduction (I think it encourages people to overspend on housing), eliminating the Earned Income Tax Credit (It seems to mostly go to tax preparers), and eliminating the deduction on college tuitions (a tax break for the well-to-do and it encourages overspending on education); however, I think I am in the minority.

I would love for policies to create 12 million new jobs, but the plan for this is the magical belief that tax cuts in capital gains will spur growth. This makes no sense to me. There is no relationship between capital gains rate and economic growth (the correlation is 0.12). The current capital gains tax rate is 15%. If the capital gains rate moves to 35% are the Walton’s going to sell their stock and move the money to cash? Of course not. Investors might move to less risky assets, but they are not going to just pull the money from the economy.

Cutting waste is wonderful, but they will not touch current SS, Medicare, Medicaid, or interest on the debt and Romney wants to increase defense spending dramatically. Every other function of the government could be stopped and the budget does not balance, and that is without a tax cut.

The reason I want specifics from both parties is that I am a believer that there is a fiscal problem rapidly approaching. I hope that people from both sides will be able to talk honestly about spending priorities. If we decide we want good roads, we should have to pay for them. If we decide we want seniors to not eat cat food, we should agree to pay for it. If we want our children to have an education, we should pay for it. Civilized society costs money. To continuously underpay for the services we demand is ridiculous.

To tell the rubes that they can have tax cuts, increases in programs they like, and pay for it by finding waste and cutting out PBS is more than dishonest. To tell everyone that they are getting a tax cut and then skew it so that the majority of the cut goes to the wealthiest people is evil.
My biggest problem with the current crop of Republicans is not that they are proposing big spending cuts, it is that they are not proposing any real cuts. They attack the Dems for spending, but spend just as much. They fight tooth and nail for tax cuts for wealthy people, but these do not grow the economy. They compromise on tax cuts for the wealthy by allowing tax cuts for all.
We have gotten to the point where no party makes anyone eat spinach. The Dems say “we are having a dinner of waffles! And we will have some fresh spinach on the side.” The Repubs say, “No way, we need a dinner of chocolate with creamed spinach on the side.” They finally get together and compromise, “We will have a dinner of waffles and chocolate.”
I hate them both, I hate the guys that think they are looking out primarily for wealthy people like me more.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.