Can Mitt be thinking clearly?
Romney’s tax plan makes no sense
By Robert J. Samuelson, WashPost, Wednesday, August 8, 6:50 PM
There seems to be a Democratic mole inside Mitt Romney’s campaign. Could it be Romney himself? Well, of course not. But considering the campaign’s behavior, it might just as well be. President Obama and his allies have cast Romney as a wealthy fat cat who’s out of touch with everyday Americans and who would use his presidency to enrich the already rich. To counter this damning image, the last thing you’d expect Romney to do is embrace a tax plan favoring the super-rich.
Which is exactly what he has done.
After examining Romney’s proposal, the nonpartisan Tax Policy Center concluded that households with incomes exceeding $200,000 would receive tax cuts; meanwhile, taxes would rise for the other 95 percent of the population. Taxpayers making more than $1 million would receive an average cut of $87,000; those making less than $200,000 would pay an average of $500 more. Romney denies that he would raise taxes on the middle class but has provided no evidence that the Tax Policy Center’s analysis is wrong.
What can he be thinking?
It’s not just that the politics are poisonous. The economics don’t make sense, either. Many wealthy Americans already have lower-than-average tax rates, because their incomes derive heavily from capital gains (profits on the sale of stocks or other assets) and dividends. These are taxed at a preferential 15 percent rate. Remember the ruckus over Warren Buffett and his secretary? Although the wealthiest 5 percent still pay about 40 percent of federal taxes, it’s questionable whether further reducing their tax burden would bolster the economy.
(More here.)
There seems to be a Democratic mole inside Mitt Romney’s campaign. Could it be Romney himself? Well, of course not. But considering the campaign’s behavior, it might just as well be. President Obama and his allies have cast Romney as a wealthy fat cat who’s out of touch with everyday Americans and who would use his presidency to enrich the already rich. To counter this damning image, the last thing you’d expect Romney to do is embrace a tax plan favoring the super-rich.
Which is exactly what he has done.
After examining Romney’s proposal, the nonpartisan Tax Policy Center concluded that households with incomes exceeding $200,000 would receive tax cuts; meanwhile, taxes would rise for the other 95 percent of the population. Taxpayers making more than $1 million would receive an average cut of $87,000; those making less than $200,000 would pay an average of $500 more. Romney denies that he would raise taxes on the middle class but has provided no evidence that the Tax Policy Center’s analysis is wrong.
What can he be thinking?
It’s not just that the politics are poisonous. The economics don’t make sense, either. Many wealthy Americans already have lower-than-average tax rates, because their incomes derive heavily from capital gains (profits on the sale of stocks or other assets) and dividends. These are taxed at a preferential 15 percent rate. Remember the ruckus over Warren Buffett and his secretary? Although the wealthiest 5 percent still pay about 40 percent of federal taxes, it’s questionable whether further reducing their tax burden would bolster the economy.
(More here.)
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