Economics 101: Magical Thinking

Posted: August 3, 2012 in Elections, Lord of the Flies, Mitt Romney, The Economy
Tags: , ,

Mitt “my wife pops out kids like a pez dispenser” Romney is accusing The Tax Policy Center of being a bunch of commies. Well, that is probably overstating it bit. His campaign actually accused them of “liberal bias” because of their conclusions about his proposed Tax Plan.

What is his Tax Plan? Below is a little illustration I put together to explain it as simply as possible.

The Romney Tax Plan

The Romney Tax Plan

Notice the ? between Step 1 and Step 2…that is where Mitt “I have more money than God” Romney thinks that jobs will be created because he gave all those tax breaks to the wealthy. I have a ? because I have never seen it happen in my lifetime. Now THAT is liberal bias.

What isn’t liberal bias is what the The Tax Policy Center said. In brief, they tested it every which way they could, even testing it the way that the campaign wanted it to be tested. That is, they tested it assuming that there would be job growth after the money was given back to the rich. And no matter how they ran the scenarios, time and time again, the end result was the same. Taxes would go up on everyone making less than $200,000 a year. Essentially, the people who can afford it the least–the middle class.

But don’t take my word for it, read the information for yourself.  Ezra Klein has a good summary of it, Forbes has a good opinion column about it, or read the actual report.

Sources:
http://www.democraticunderground.com/125163371

http://www.forbes.com/sites/rickungar/2012/08/01/romney-tax-plan-devastated-by-non-partisan-tax-policy-center-but-is-the-tax-policy-center-really-non-partisan/3/

http://www.taxpolicycenter.org/UploadedPDF/1001628-Base-Broadening-Tax-Reform.pdf

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