Playing the only hand they have, Republican Romney says ‘tax cut wouldn’t be huge.’
Romney is apparently seeking ways to further distance himself from the prospect of winning Ohio voters and has fallen prey to brutal honesty. Maybe that’s the Mormon in him, I don’t know.
Obama said the Romney has an arithmetic problem and maybe he does.
Tax cuts of the type that Romney speaks will not stimulate growth and will only exacerbate the problem already triggered by Bush-era cuts that simply have to stop.
There are insufficient details in the Romney plan and therefore his lips are moving and voters are reading them but it doesn’t add up.
Romney speaks about immorality in passing debt onto future generations and I agree. Wealthy persons should rebate what they skipped out on that American could not afford. A rebate from the wealthy won’t happen, though ending the Bush breaks has to.
I wonder if Mitt Romney would get a bounce if he stopped talking?
“Romney Says Tax Cut Wouldn’t Be ‘Huge’
By SARA MURRAY And JARED A. FAVOLE
WESTERVILLE, Ohio—After months on the trail touting a major across-the-board tax cut, Mitt Romney told an Ohio crowd not to look forward to a “huge cut in taxes.”
“I want to bring the rates down,” Mr. Romney said at a rally here Wednesday, but “don’t be expecting a huge cut in taxes, because I’m also going to lower deductions and exemptions.” The Republican presidential nominee appeared to acknowledge Wednesday that the tax-rate cut of 20% he promised for all Americans wouldn’t provide as much relief as some may have hoped.
President Barack Obama, also campaigning in Ohio, pounced on the tax remarks. Mr. Romney has an “arithmetic” problem, the president said.
“My opponent, and his allies in Congress, tell us somehow we can lower the deficit by spending trillions more on new tax breaks for the wealthy,” Mr. Obama told supporters at Bowling Green State University just six days before early voting begins in Ohio. Mr. Obama is seeking to solidify his lead in a series of polls in the important swing state.
Earlier this year, Mr. Romney rolled out a sweeping tax plan that would keep Bush-era tax cuts and further cut rates by 20% for all Americans. He said he would pay for it by limiting or killing deductions for high-earners and that it would drive economic growth, which would offset the rest of the cost.
Mr. Obama said Mr. Romney has avoided being specific about how he would pay for the tax cuts and new military spending. “They can’t explain it because the math doesn’t add up,” Mr. Obama said.
He also criticized Mr. Romney’s own taxes, something that has dogged him for months. “My opponent may think it’s fair that somebody who makes $20 million a year like he does pays a lower rate than a teacher or an auto worker…but I disagree. I don’t think that’s fair,” Mr. Obama said.
Mr. Obama has said he wants to end the Bush-era tax cuts for income above $250,000, which Republicans reject. “I refuse to ask middle-class families to give up their [tax] deductions for owning a home or looking after their kids just to pay for another millionaire’s tax cut,” Mr. Obama said to applause.
Mr. Romney on Wednesday didn’t limit himself to cutting deductions solely for the wealthy and hasn’t explained who would count as a high-earner under his tax plan. A staffer recently offered a scenario that he said could make Mr. Romney’s tax plan workable: Eliminating or trimming deductions for those earning $100,000 or more—a subset of people that may not always view themselves as high-earners, particularly depending on where they live.
The shift in tone came as Mr. Romney focused on the danger the rising national debt poses. He appeared along with a massive debt clock, which tracks the federal debt in close to real time.
“It is immoral for us to pass on obligations like that to the next generation,” Mr. Romney said as he pointed out that the huge debt already comes with a cost. “The interest that you’re paying on that debt every year is more than we pay for housing, for agriculture, for education and transportation combined.”
He said the tab has been kept “artificially low” by extraordinary actions taken by the Federal Reserve, which has been purchasing long-term U.S. debt as a measure to boost sluggish economic growth.
“Every time the government goes out to borrow money…they just give the debt to the Federal Reserve that takes it and puts it in their pocket, basically printing more money,” Mr. Romney said. “What’s going to happen when those interest rates go up? That bill’s going to get bigger and bigger.”
The Federal Reserve’s efforts have been designed to lower interest rates and make borrowing cheaper, which has allowed the government to borrow money at a lower rate and also has benefited people borrowing money to purchase homes or automobiles. When the interest rates eventually rise, the cost to finance the government debt will increase, as well.