Tuesday, October 16, 2012

Romney's Economic Plan Not Difficult to Comprehend

If there is one thing Democrats and those on the left love to do, especially during an election year, is to try and make things appear a lot more confusing than they actually are. A point of reference is their take on the Mitt Romney economic plan he will put in place if he is elected President of the United States of America.

They love to mislead, call into question, demonize and cloud his plan with platitudes, false accusations and 2 minute sound bites that declare the Republican candidate isn't being specific about what his plan is.

So, with that in mind let me simplify the Romney Economic Plan for those with even a limited amount of intelligence, which would include the majority on the ultra-left and ultra-right of this issue - in other words - I will dumb it down for them. Those reading this with even an average economic intelligence please forgive me for needing to resort to this kind of kindergarten presentation of such an important issue.

THE ROMNEY PLAN - Spelled out for the unenlightened

Plan #1 - Remove the Estate Tax

This is one of the most corrosive taxes in American history. It literally eats away at those who live by the adage "a penny saved is a penny earned." It penalizes those who SAVE their money. In the year 2013 it will increase from its ridiculously high rate of 35% to a highway robbery level of 55% for those considered high income savers. Those being hurt most by this gun-to-the-head tax are landowners, such as farmers. Their land is considered an estate whether it is profitable or not. Today, thanks in large part to government regulations, owning acreage isn't an asset but has turned into a liability. Mitt Romney's deletion of the Estate Tax would resolve that unfair government practice.

Plan #2 - Put a Permanent Freeze on Current Tax Rates on Dividends and Capital Gains

This will serve to steady investments in this nation. If, as Obama and his cronies want, the capital gains tax were to be increased above its current levels massive borrowing against the U.S. debt would ensue and the everyday Mom and Pop investors, which consists of mostly the hard working diminishing middle class, would begin to see big losses on their dividend returns from municipality, electrical and water system bonds and other dividend incurred investments.

Plan #3 - Bring Down ALL Income Tax Levels by 20%

This would be a huge stimulus to the national economy. One that would affect all workers in this nation, not just the banks and big corporations which benefitted from the Bush/Obama stimulus plan. Why? Because unlike the previous stimulus plans this one is an across the board tax cut by 20% to all working Americans. If you work in the United States and earn a pay check your income tax rate will be cut by as much as 20%....Period! I don't know how much simpler an explanation is needed to grasp the boost this will give to the economy. People with 20% more working cash in their pockets each month can invest more, buy more, and do more to ensure the growth of the economy. Reagan proved that by cutting taxes you do increase government revenue because with more funds available for spending and investing and business growth - revenues actually increase. He was right and proved it and so is Mitt Romney. One plus one still equals two.

Plan #4 - Bring That Overseas Money Back Home

Dubbed the Repatriation Tax Act this plan of Mitt Romney's would encourage those corporations who have been less than enthusiastic about Obama's and the liberal left's business adroitness to not have to pay a second tax on money earned or made overseas. Currently any company doing business outside the United States pays the hosting country whatever the tax is for profits gained in that country. That seems fair enough. If you do business in a foreign land you should be subject to the taxes of that land. What is unfair is the tax imposed on those same profits whenever all or a portion of those funds are returned for reinvestment in the United States. These are not monies made in the United States but are monies being used by corporations to invest back into this country. It is an unfair practice. If that invested money makes a profit for the corporation in the United States then that gain is fair game for taxation, but not the gains from another country that are returned by the corporation for investment in American enterprises. Removal of this double-taxation policy would free corporations to return gains from abroad to the United States to help economic growth and stimulation of the American economy. As long as the current practice of double taxation on overseas profits brought back to America continue companies will be reluctant to reinvest those overseas corporate gains in America. There is simply too much of a downside. What the left has always failed to grasp about the free enterprise system is that profit benefits all, not just the wealthy few.

Plan #5 - A Corporate Tax Reduction

Mitt Romney would cut corporate taxes down to around 25% plus or minus a percentage point in either direction. This is the part of the plan that the Democrats on the left hate the most because as the Jihadist see America as the Great Satan, for the liberal left in America the Giant Corporations are the Great Satan of this nation. Of course both the Jihadist and liberal left have gotten it all wrong. Currently the top end corporate tax rate is around 36%. That is a ridiculous amount already and if Obama and his left-leaning cronies have it their way, by 2016 it will have risen to nearly 50%. In other words half of everything earned by a corporation would end up in the government coiffures and we all know how well the government manages money. During this election campaign Obama has stated that he would lower the corporate rate to 25%. That is a good start, if it weren't for the fact that it is just another lame and lying campaign promise like "Change and Openness" that he never intends to keep. His real goal is that 50% mark for future corporate taxation. Why is this part of Romney's Plan so important? Because, as important as Plans 1-4 are, none of this will have the kind of positive impact on the American economy and its future growth as cutting corporate taxes will. Romney and even those with an average understanding of economic affairs know that the driving force behind any country's economy is the success and failure of its privately owned corporations, both large and small. If a company fails, the nation looses. If a company succeeds then the country hosting it benefits greatly. And, the number one cause of failure in most companies isn't poor product or mismanagement, its government over-taxation of its investment to profit margin. Recent studies have shown that the number one factor behind the great corporate exodus to other countries is this overburdensome corporate tax policy practiced by the United States government. Mitt Romney's economic plan puts a lid on that tax and turns down the burner before it causes an economic explosion this country may never recover from.

This is the Mitt Romney Economic Plan simplified so that even those on the extreme left and ultra-right can understand it. This plan will bring back America from the precipice of economic disaster that the Bush/Obama plans have placed us into. If Mitt Romney isn't elected the next President of the United States then what happens in this nation will make Europe's current fiasco look enviable.

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