[Adak]

Originally Posted by BigV

Adak, or anyone who understands and believes Romney's tax plan, please help me.

He's said that we as a country need to solve our budget problems, and the main way to do that is to reform the tax code. He's said he will cut tax rates by 20% across the board. This is supposed to generate enough increased growth to create millions of jobs and broaden the base. He's claimed that his tax cuts "absolutely" not increase taxes, and that it will be done in a revenue neutral fashion, paying for these cuts with compensating eliminations of deductions. I think I have that right.

So here's my question.

He says he's gonna solve our budget problems by growing the economy.
He says he's gonna grow the economy by cutting tax rates.
He says he's gonna keep the same amount of money coming in by eliminating deductions.

So, business is being held up from expanding because they have too many deductions? Business is afraid of deductions?

What?

Ha, pretty funny!

The Conservative way to a better economy (which is the only way it works, btw), is:

1) Lower taxes: puts more money into everyone's pocket, and that gets money MOVING around the private sector, (and into gov't as well, by various means). We have money now, but it's not moving, because the gov't has WAY too many strings attached to it.

Remember that a GOOD economy is not how much money there is, but how FAST that money is moving through the economy. Stagnation is something you do NOT want in your economy!

2) Excessive deductions in the tax code, are a hindrance, basically picking and choosing which payer (personal or business) is a winner, and which will be the losers, because not everyone can use those deductions.

You don't probably want a perfectly FLAT tax code, but we need a flatter tax code.

Businesses have to forecast ahead, and when deductions and items like health care costs changing, pop up in your forecasts, it puts doubts into your forecasts. Business people do not expand their business when they have serious doubts:

"Will health care expenses increase by 20% this year, because of Obama care? Can we get a waiver?" maybe, and maybe.

"Will we be able to get <D> deduction this year, and if so, how big will it be for us? maybe and who knows the amount.

Not good.

Reduce rates, meaning the amount of taxes due on a given amount is LESS.

Eliminate deductions and exemptions equal to the amount of the amount of tax savings from reduced rates--this is what being revenue neutral means--so the net tax due is the same.
What's changed? I pay the same amount in taxes, how does the deficit go down?

Because as stated, the tax base has increased, and incomes increase as money MOVES faster in the economy. Gov't coffers fill up quicker, also, from many tax sources, not just income tax.

Romney's tax plan does not add up. He won't explain it, Adak won't explain it. mercy won't explain it. Urbane Guerrilla won't explain it. Firing Big Bird won't solve it, but that's all he's offered. Oh, that and Planned Parenthood.

He's stupid or he's lying. And I don't think he's stupid.

You just are not informed yet on how our economy works, in any detail.

Most everyone thinks that more money in the economy will improve our economy - so if the gov't adds 20% more money to it, that should improve our economy by about 20%.

Which is completely wrong. Adding money to the economy gives it a stimulus, but until money is MOVING, it is NOT GOING TO HELP THE ECONOMY.

We've had a LOT of new jobs created, but do they tell you that tens of thousands of those new jobs are GOVERNMENT jobs?

Oh hell no!

That is NOT growth in the private sector, and THAT is what we need. And you won't get that from Obama - he's never worked in the private sector, and doesn't like it. He wants more government jobs and more government controls.

Look at how quickly he axed the Keystone Pipeline project. He'd have us eat grass, rather than approve a major business enterprise that would have created hundreds of new high paying jobs.

You have to respect Obama for this - the dang guy is consistent. Most smart people will turn away from something that doesn't work, and try something else. Not Obama - he'll stick with it and beat you into poverty with it. He's not "liberal", he's a Socialist or Stateist (if you prefer).

During his campaign in '08, Obama said that "under my cap and trade system", Coal fired electrical plants would be "bankrupted", because of the taxes (fee's and fines), he would make them pay.

NOT ONE DAMN WORD ABOUT HOW WE REPLACE THE POWER HE WANTS TO TAKE AWAY!! And NOT ONE reporter asked him A DAMN QUESTION about that obvious problem!! And of course, nothing about the doomed shareholders of those companies!!

He said he would make make electric rates "skyrocket" - well, that's being honest at least. Frankly, I'd rather he lied, and made the electric rates come down, however.

Just heard a prediction, that under the latest proposed cap and trade system, diesel fuel for my truck, will be in the $25-$27 dollar range PER GALLON! I nearly feinted, and that's no lie.