RICK SANTORUM, TAXES AND A NEW RECESSION

…the Bleacherman has entered the stadium…

I have been trying to work my way through the Rick Santorum Tax Plan.  I applaud it for cutting tax liabilities but much of it, in a big picture way, does not make sense.  Help me understand how this plan will create jobs and hence stimulate the economy.

Santorum wants to reduce the tax brackets to just two; one at 28% and the other at 10%.  Wow.  So the middle class will enjoy significant tax relief and our rich millionaires will also get about a 30% decrease in their tax liability.  Okay, with the ingestion of antacids I can live with that.

Santorum would also end the Alternate Minimum Tax which many middle income taxpayers would enjoy as much as those super rich who now use loopholes and tax shelters to pay absolutely no tax.  Yeah for Santorum.

Capital gains would also decrease from 15% to 12%.  Great, just think of the benefit to all of us who make millions in stock market trading.

He also wants companies that manufacture goods to pay no tax…do you hear that Boing, GE and friends.  No tax.  Yes.  No tax.  Now you don’t have to pay your accountants millions of dollars to find ways not to pay taxes.  Rick Santorum will do it for you.

And for those of you who like to procreate just think about a much larger tax deduction for each child you have.  I mean, you will have no option but to have children since Rick will take away your right to utilize birth control contraceptives to control the size of your family.  Government demands large families and will pay you for any inconvenience that a larger family may cause.

So, how does this pro-family, pro-corporation tax plan create jobs?  And don’t give me that lower corporate taxes creates jobs bullshit.  It doesn’t.  Lower taxes does not increase revenue; it only affect the distribution of profit.  That is a fact.  And it is a FACT that it is revenue that is a key driver in determining the size of a company’s payroll.  If revenue is flat – or decreasing – the amount of tax cut does not provide corporations an incentive to increase payroll.  THAT IS THE TRUTH.

Economic recovery will only come when we increase the number of Americans who have discretionary money to spend and we increase the amount of discretionary money that can be spent.  That is the key to recovery.

I am not financial whiz kid.  I cannot score the net effects of the Santorum tax plan but I think it is safe to assume that these tax deductions would equate to a significant reduction of revenue that the Federal Government can depend upon.

Which of course fits Rick Santorum’s vision of a much, much smaller government.  Santorum believes in a balanced budget amendment therefore if revenue is significantly reduced then government spending has to be reduced proportionately.  Which means less government workers and less government benefits and programs.  Which means less money circulating in the economy which means businesses will see less revenue which will translate into more unemployment, less tax revenue and more misery.

Thank you Rick Santorum.

When will we address economic issues truthfully?

…the Bleacherman has left the stadium…

 

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