Friday, October 12, 2012

Can We Cut the BS on the Romney-Ryan Tax Plan?

Joe Biden having a stroke because he can't
get Paul Ryan to say anything truthful
 
When I ask the question in the title above, what I mean is this: Paul Ryan and Mitt Romney have spent a great deal of energy trying to tell us that they plan to do the following:
  1. Lower tax rates
  2. Through tax deductions, keep the tax burden the same on the wealthy
  3. Not raise taxes on the middle class
  4. Not increase the deficit
  5. Increase defense spending
  6. Keep taking care of the poorest of the poor
To anyone with basic math skills, this is obviously impossible.  Democrats keep focusing on various parts of this plan- it's hard to argue it since the details are really vague- so they've been talking about how this means middle class taxes will have to go up (i.e. #3 above will have to be given up).

Naturally, Republicans disupte this, by claiming that the laws of Mathematics have been changed... or something.

But really, Republicans are right in a sense.  They're not going to raise taxes on the middle class, which would pretty much end them as a viable party in the US.  But it's simple, really: it's number 4 that will be ignored.  Think about it: when have Republicans every cared about deficits once they're in charge?

The interesting part of that is that increased deficits is exactly what liberals have been calling for the past few years, and should help goose the recovery.  So if Republicans win and institute their plan the way I expect, it might actually succeed- but not because of the wondrous tax cuts; it will work because of good old-fashioned Keynesian deficit spending.  The problem is that once we're in recovery we'll have a structural deficit that will be very hard to close- and I'll have to listen to insufferable Republicans tell me how tax cuts worked like magic again.

4 comments:

  1. Isn't it strange that Liberals always go to the "throw more money at it" and it will go away. Whatever is ailing the country they borrow, they go into debt, they spend our money, our childrens money and if they get another 4,, our grandchildrens money. They wouldn't dream of doing that in their businesses or at home because that is THEIR MONEY. Spending other peoples money is so easy,,so much fun,,and frankly so STUPID! They won't stop,,stopping gets them thrown out of office. Re-election is not everything they think about,,it's the ONLY THING! Wouldn't you think the smart Democrats who read this blog would have figured this out by now?

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  2. It could be BS, but not to worry,,
    Take what is said by people who can do nothing without first getting elected and second getting the cooperation of 535 others,,,,with a grain of salt.
    You libs can remember when Obama said lots of things that sounded great to you before he was elected,,then didn't do most of them. The things he did either didn't work as planned or the people didn't like them. Criticize O's failures that's what we grown-ups do, there's plenty there.

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  3. Vice President Joe Biden said the stimulus was working beyond his "wildest dreams" and later vowed that Americans would have "a summer of recovery."
    There were just too many false hopes. We were told that the stimulus would keep the unemployment rate under 7 percent and we should be seeing 5.6 percent by now. But we've never gone below 7.8 percent. And we have 7 million fewer full-time workers today than when Obama took office. He promised to create "five million new jobs in solar wind and geothermal energy." The job estimate was off by at least a factor of 10, and today many solar and wind industry firms are fighting bankruptcy. He pledged that he would cut the deficit in half. But the current deficit, estimated to be well above a trillion dollars, is double the 2008 figure.

    He said his healthcare reform plan would "cut the cost of a typical family's premium by up to $2,500 a year." But premiums for employer-sponsored family coverage have increased by more than $2,300 in the last three years, according to the Kaiser Family Foundation.

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