Gov. Romney is a slick salesman, a missionary for the interests of the rich. He’s concerned that “small businesses” — he actually means rather large businesses — pay too much in taxes and therefore can’t hire workers, so he’s going to reduce their tax rates.
But to keep the change “revenue neutral” and not drive up the deficit, he’s going to eliminate deductions and credits. Let’s take him at his word that he would do that.
But if the same amount of tax revenues come in — if those “small businesses” pay those taxes — how is that going to help the businesses? (And if they don’t provide the revenues, who will?)
Of course Romney will say “growth,” a handy, magic answer. Believe in me and I’ll create 12 million new jobs.
But with insufficient demand in the system, what businesses need is confidence that consumers will have money to spend.
We’ve tried tax cuts before, and they didn’t generate growth. Neither did deregulation. We got the Bush Bust.
Gov. Romney is a slick salesman — but he’s selling snake oil.
— Rick Wicks