Lots of our readers have been asking whether Mitt Romney will be able to fix the economy.To continue to answer this question, we have begun analysing Mitt Romney’s plan to fix the economy, which he published last fall.
We’re only on page 26 of 87 right now, so we still have a long way to go.
But we were startled to discover the following:
Mitt Romney does not want to cut personal income tax rates!
In fact, Mitt Romney thinks that today’s tax rates are “low.”
This may be the first time we have heard anyone from the current version of the Republican party say anything like that. Today’s Republican party line, we thought, was that taxes were way too high, especially taxes on rich Americans. So we were startled to see that Mitt Romney, the Republican candidate, argue that we should “maintain” current personal income tax rates because they’re “low.”
Yes, Romney wants to eliminate the death tax and cut the corporate income tax rate from 35% to 25%. And he also wants to cut taxes on “savings and investment” from the already unprecedentedly low 15% rate on capital gains and dividends–eliminating this tax completely for folks making under $200,000 a year.
(The latter of these plans actually makes great sense and will help restore the economy’s fundamentals over the long term. I’ll explain why in a future post.)
But Mitt Romney is happy with today’s personal income tax rates.
Let’s go to the plan:
First, Mitt Romney wants to maintain today’s personal income tax rates.
Then, he describes these rates as “low”:
This is quite encouraging for those who hope the real Mitt Romney is actually the reasonable middle-of-the-roader he was as Governor of Massachusetts instead of the right-wing extremist who ran in the primaries.
Today’s income tax rates are historically low. So, it’s encouraging to see a Republican leader admit that.
(Yes, income taxes will have to go up modestly if America is ever to close its gaping budget deficit, but it’s a step in the right direction to have both parties agree that they don’t need to go any lower.)
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