Comment

Weathergirl Goes Rogue

42
No Malarkey!9/09/2012 6:59:29 pm PDT

re: #26 palomino

After being unable to list one single tax deduction/exemption he wants to remove, Romney claims the following about his tax plan:

If he’s not reducing taxes on the highest earners, how is his overall tax plan supposed to “unleash the job creators” so they’ll have extra revenue to hire new workers? In the “rising tide lifts all boats” supply side analogy, the rising tide is increased wealth for the highest earners in the form of tax cuts. If there’s no such thing in his tax plan, what’s the point? How is it any better, from a gop point of view, than the Bush tax system we have now?

To be fair, the theory is that tax deductions distort the economy by encouraging behavior based on the tax code rather than economic efficiency. So if you eliminate deductions and lower marginal rates in a revenue neutral way, you create incentives for people to maximize their income, generating economic activity, rather than gaming the tax code.