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Monday, October 29, 2012

Johnson: Romney Tax Plan Doesn’t Add Up, Helps Wealthy Too Much

Austin American-Stateman op-ed:  Romney Tax Plan Doesn’t Add Up, Helps Wealthy Too Much, by Calvin H. Johnson (Texas):

Mitt Romney has aggressively promised large tax cuts for the richest taxpayers. President Barack Obama opposes them. Romney has simultaneously promised not to increase the deficit or increase middle class tax, but he has not specified what tax loopholes and tax subsidies he would attack to fund his plan.

There are not enough tax subsidies to keep all of Romney’s promises. Romney, moreover, also defends some important and wasteful loopholes. ...

Our current tax system resembles a sponge with lots of holes, but not very much fiber left. Over the years, brilliant tax planners, indifferent IRS rules, and members of Congress who are trying to represent us have created the loopholes. There seems to be a great rule that empires fall because their taxes inevitably fall apart. Aggressive tax reform that goes after the tax loopholes in the federal tax system would do the country good. Romney gives at least lip service to ending loopholes and tax subsidies, but then to actually do it, we are going to have to get specific.

It does less harm to the sum of human happiness to take tax from the rich instead of the poor. The Little Match Girl had only her matches to keep her alive. Tax her and she is dead. Uncle Scrooge McDuck took his income in coins that were added to swimming pools of gold coins in various vaults. The coins were never very good swimming pools, so loss of one would not be missed much. If we need a dollar to pay for the Marines or close the deficit, it is better to take it from Uncle Scrooge. That will do less harm.

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Comments

Any idiot who sees the real world in terms of Scrooge McDuck and the Little Match Girl is worthy of little attention.

Johnson is a parody of liberal self-love...and self-delusion.

Posted by: cas127 | Oct 29, 2012 11:04:14 AM

Anyone really interested in this problem should read The Betrayal of the American Dream by Donald L. Bartlett and James B. Steele. This should be must reading for both our candidates and they should be forced to discuss the findings of these two Pulitzer Prize winners and have been on this problems for decades. The Philadelphia Inquirer ran an excerpt of the book and an Q&A with them as to what can be done. They offer some very sound steps with reasoning as to why. Trust me, no one in Congress and the two candidates are talking about these solutions.
One of the big points they make is that the loss of our progressive tax rates is the major reasons for why we are have slipped into deficits and our economy is where it is at. Additionally, they point out that the interest and dividend rates do nothing for our economy except make the rich richer. Trickle down is just a complete falsehood.

Posted by: Steven J Fromm | Oct 29, 2012 12:39:43 PM

Cas127--I agree. Everything would be much better if we would view the world through the lens of fictional architects and railroad tycoons.

Or maybe you should have read the op-ed instead of the excerpt.

Posted by: Anonymous | Oct 29, 2012 2:34:10 PM