Romney goes back to the old and tired “it would hurt small businesses” line. I know plenty of small business owners that would not complain one bit if they were making $1 million dollars a year and had to pay a little more in taxes. And it would definitely not stop them from hiring more people.
A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) increased the number of people employed by between 1.0 million and 2.9 million jobs as of June 2011.
In addition to saving and creating jobs, ARRA has increased the number of hours worked, CBO has concluded. That is, without ARRA, many full-time workers would have been reduced to part-time status and fewer would have worked overtime.
CBO’s analysis finds that ARRA has significantly boosted both the number of people employed and the number of hours worked. Without ARRA, millions more workers would be either unemployed or struggling to get by on less income.
CEOs in 22 of these 25 firms enjoyed pay increases in 2010. In 13 of these companies, CEO paychecks ratcheted up while the corporate income tax bill either declined or the size of the corporate tax refund expanded.
Currently, corporate taxes have plunged to historic lows, with many of America’s largest companies literally paying no federal income taxes. Meanwhile, according to researchers at Northeastern University, corporate profits accounted for 88 percent of real national income growth since 2009, while wages and salaries made up less than 1 percent. In 2010, executive pay grew by 27 percent while wages grew by only 2 percent.
The IPS report also found that “of the 25 companies that paid their CEO more than Uncle Sam, 20 also spent more on lobbying lawmakers than they paid in corporate taxes. Eighteen gave more to the political campaigns of their favorite candidates than they paid to the IRS in taxes.”
This is part of Mitt Romney’s attempt to continue to gain the favor of the conservative and Tea Party vote. A vote he and his campaign think they will need to win the Republican nomination. However, as with many of the conservative talking points, they are not based in reality or based on bad or misleading data. Thank goodness for thinkprogress.org. Here are a few snippets of the article.
ROMNEY: “Marginal income tax rates and tax rates on savings and investment must be kept low. Further, taxes on interest, dividends and capital gains for middle-income taxpayers should be eliminated.”
REALITY: Taxes are the lowest they’ve been in 60 years, far lower than under several Republican presidents. Taxes on dividends and capital gains are far below the level at which they were under President Reagan. Furthermore, 68.3 percent of the capital gains tax is paid by the richest 1 percent of Americans, while the bottom 95 percent of Americans pay just 10 percent of them, so it is unclear how Romney thinks a capital gains tax cut can be fashioned as a middle class tax break.
ROMNEY: “Our corporate tax rate is among the world’s highest. It leaves U.S. firms at a competitive disadvantage and induces them to park their profits abroad, benefiting the rest of the world at our expense.”
REALITY: While the U.S. corporate tax rate is high on paper, once all the credits, deductions, and loopholes are accounted for, the U.S. has the second-lowest corporate taxes in the developed world.
First, 51 percent of respondents in a Politico-George Washington University poll said that they favor “a large scale federally subsidized nationwide construction program putting Americans back to work building roads, bridges, schools, and hospitals.” Just 21 percent of respondents oppose such an idea.
Meanwhile, 62 percent of respondents in a new NBC-Wall Street Journal poll approve of the federal government “paying for long-term unemployed workers to train at private companies for eight weeks, and then giving the companies an option to hire them.” A plurality of respondents approve of funding a road construction bill, extending unemployment benefits, and extending the payroll tax cut that was included in last December’s tax deal.
– Extend all the Bush tax cuts: While everyone got a tax cut from President Bush, the extremely wealthy got the lion’s share of the benefit. In 2010, fully half of the entire benefit from all of the Bush tax cuts flowed to the richest 5 percent of Americans. Extending them all (plus indexing the Alternative Minimum Tax to inflation) will cost nearly $4 trillion, not including interest costs.
– Eliminate capital gains taxes for middle income households: Capital gains tax rates are already extraordinarily low, but middle class Americans don’t enjoy much benefit from that. According to the Tax Policy Center, 67 percent of the entire benefit from lower capital gains tax rates goes to millionaires. Romney’s proposal won’t cost much because it won’t benefit many people.
– Cut corporate taxes: Romney’s proposal to cut the corporate rate by about a third would cost more than $900 billion. Needless to say, this cut would benefit mainly the very rich and corporations.
– Eliminate estate taxes: Right now, only the very biggest, richest fraction of a percent of all estates pay any tax at all. Eliminating even this paltry amount would cost about $175 billion, and would, of course, only benefit a few extremely wealthy heirs and heiresses.
Haven’t we heard this story before. It’s the same old tired ideas being “regifted” with a nice new bow and called a “new policy”.
Can anyone remember the last time a Republican had a new idea? And Ron Paul’s ideas don’t count on account that his ideas are even older and no one remembers that 150 years ago, things sucked.