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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNY Times - "Do Tax Cuts Lead to Economic Growth?"
This analysis further confirms that Romney is going to cut taxes without really making any effort to pay for them by "closing loop holes." Then, perhaps to avoid scrutiny on the deficit, perhaps he will declare war on Iran and use that as an excuse for why the deficit has continued to explode. He will then blame Obama and Democrats for not being brave enough to pass Ryan's Medicare plan, which he will now do to "save Medicare and Social Security" by privitizing them. We have to keep on calling Republicans on this bait and switch.
http://www.nytimes.com/2012/09/16/opinion/sunday/do-tax-cuts-lead-to-economic-growth.html
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The problem for anyone trying to evaluate the Romney plan, however, is that there isnt a full plan yet. He will not say which tax breaks he would reduce, and the large ones, like the mortgage-interest deduction, are all popular. In a painstaking analysis, the Tax Policy Center showed that achieving all of Mr. Romneys top-line goals a revenue-neutral overhaul that does not increase the tax burden of the middle class is not arithmetically possible. History is littered with vague calls for tax reform that went nowhere.
Beyond taxes, Mr. Romney has declined to detail what spending cuts he would make, although he has promised to make big ones. And some of the programs that would be at risk medical research, education, technology, roads, mass transportation probably have a better historical claim on lifting economic growth than tax cuts do.
The policies that new presidents pass tend to be ones on which they laid out specifics, be they the Bush and Reagan tax cuts or the Obama health overhaul. Based on the specifics, Mr. Romney puts a higher priority on tax cuts than anything else. Yet the reality of the last two decades has caused conservative economists, and Mr. Ryan himself, to acknowledge the limits of tax cuts.
Xipe Totec
(43,872 posts)Curmudgeoness
(18,219 posts)Record profits. The tax planning is freaking my boss out. But the one thing that I have not heard from him is that he is going to stop doing business because he will have to pay the taxes. He is still much better off than ever, even with the taxes he will have to pay. And if taxes were at a higher rate, he would still be much better off. He will not close up because business is too good. None of them will.