Wednesday, August 15, 2012
The Romney-Ryan mantra on lower taxes on the wealthy. ***************** Romney-Ryan (R-R) want to lower the fed. income tax rate for the top earners. But this segment already has it very good. R-R use the “nominal” top rate of 35%, and argue it is so high it de-incentivizes the job creators. But the 35% is not the real rate. The “effective” rate, the real rate, is about 15%…the lowest in 30 years. Tax lawyers and CPAs work full time reducing the “nominal” rate to the lowest rate legally allowed. K Street lobbyists work full time to obtain tax credits, excemptions etc. (what wonkish budgeteers like Ryan call “tax expenditures”), which now total over $1 trillion ,with a T, yearly. Ryan wants to lower the “nominal” rate by eliminating many expenditures. What would, or could politically, be eliminated? The $75 billion home mortgage deduction? Would the Ryans,Romneys, and Obamas agree to that on their mansions? That’s a clown question, bro.! The $120 billion employer deduction for health care? That’s another clown question, bro.! Employers would drop health insurance for millions. The $38 billion deduction for charitable giving? There you go again…another clown question, bro.! And how about eliminating the $150 billion that is saved by using off-shore tax havens? Now that’s a clown question, on steroids! Like Jack Benny traveling over alligator-infested moats to visit his vault, Mitt like to make occasional visits to the Caymens and Bermuda to carass his stash. Lowering “nominal” tax rates by eliminating expenditures will not happen.