Past experience suggests that tax reductions are not good medicine for job growth. The Bush cuts, for example, were followed by the slowest job expansion since World War II. Although the economic situation is dramatically worse than it was when Bush took office, Romney intends to reduce taxes even more for high-income earners

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Mitt Romney plans to govern for the Rich and Wealthy and oppressing the Poor and Middle Class with higher taxes and less benefits of Government : less Education, less Health, less Security, less Protection. At the same time expanding the Military.

The American Prospect

Mitt Romney, Servant of the Right

By Jamelle Bouie

May 17, 2012


Mitt Romney, Servant of the Right


Some excerpts :

You could plausibly say that Romney intends to grow the economy with the old-time magic of trickle-down economics.

He makes no attempt to square the circle on tax cuts and deficits. According to an analysis by the Urban Institute–Brookings Institution Tax Policy Center, Romney’s plan would add tremendously to the deficit. Extending the Bush cuts would cost the federal government $480 billion per year; Romney’s additional “tax relief” would cost another $420 billion. Under a Romney presidency, the federal government would lose $9 trillion in revenue over the next decade in order to lower taxes for the wealthiest Americans.

To make up for the lost revenue, Romney has said that he will eliminate the mortgage-interest deduction for higher-income earners as well as deductions for state and local taxes. At most, however, that will raise $31 billion, a minuscule sum by comparison.

Romney’s tax plan excels in one way: exacerbating income inequality. As measured by the Gini Index, a comprehensive and widely used measure of income inequality, the United States ranks near the worst of developed countries in terms of inequality. The wealthiest Americans have seen their incomes explode over the last decade, to the point where the top 1 percent of households earn close to a quarter of all income.

The federal tax code is directly related to the level of income inequality. A progressive tax code, which reduces the after-tax income of wealthy Americans by a greater share than that of their lower--income counterparts, bends inequality downward. Flatter taxes, by contrast, tend to maintain the pre-tax distribution of income.

Romney’s plan drastically flattens the tax code. It would decrease the top rate to 28 percent and yield more than 6 percent in additional after-tax income for the wealthiest Americans. At the same time, the burden for everyone else would go up, because Romney plans to end stimulus-related tax breaks for working and middle-class Americans. He consistently says that he won’t “apologize” for his wealth. What he will do, however, is keep wealth with the wealthy.

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