One of the more contentious issues in the Presidential race is Mitt Romney’s contention that his tax cut plans are sound fiscal policy. Now the key elements of his plans are to (1) cut rates 20% across the board (2) eliminate the Estate Tax and (3) reduce itemized deductions in an unspecified manner. According to Mr. Romney this will have the following results.
- Taxes will not be cut for wealthy taxpayers.
- Taxes will not be raised for middle and low income tax payers
- The tax plan will not increase the deficit, it will be revenue neutral.
- Economic growth will take place as a result of the tax plan.
So why the claim that this is a lie. Because the claims of Mr. Romney just cannot be true. First of all elimination of the Estate Tax will provide tens of billions in tax reduction for the wealthiest 2% of Americans, because they are the only ones paying the Estate Tax. Mr. Romney’s family will save maybe $100 million or so in taxes. So the plan must cut taxes for wealthy tax payers, that is a certainty.
The claim that taxes will not be raised for middle and low income tax payers cannot exist with the claim that the plan will be revenue neutral. The way that Mr. Romney is making this claim is by assertion only because he will not release details of his tax plans.
“What I’ve said is I won’t put in place a tax cut that adds to the deficit. That’s part one. So there’s no economist that can say Mitt Romney’s tax plan adds $5 trillion if I say I will not add to the deficit with my tax plan.’’
Notice the arrogance here, the condescension, the argument that deference must be given to Mr. Romney because he says something even though he doesn’t back it up with any facts, details, analysis or data. This is a window in to the entitlement mentality of a person who expects everyone to accept what he says without questions, even though what he says is patently untrue.
Finally, the idea that the tax plan will spur economic growth is based solely on the fact that marginal rates will be lower. The thinking is that people will work harder with lower rates. It ignores the fact that most Americans are working as hard as they can just to survive in this economy. The goal of lower marginal rates is not economic growth, it is to allow the very wealthy to have even more as their incomes and fortunes grow, largely at the expense of the middle class.
Mr. Obama did not make any of this argument in his debate. If he is incapable of doing so maybe he doesn’t deserve to be President, but even if he doesn’t the country does not deserve the rampant dishonesty of Mitt Romney.