To help cut through the thickening smokescreen the Romney-Ryan team is puffing up around their unpopular tax policies, Mike Lofgren’s “Romney and Ryan’s Phony Deficit-Reduction Plan” at The Daily Beast has a nut graph that simplifies it:
It is not just that he cuts taxes, it is how Ryan cuts taxes that gives us a clue as to the Republican agenda. The Center for Budget and Policy Priorities estimates that under his plan, those making less than the princely sum of $20,000 a year would have an average tax increase of $193 annually, while those earning more than $1 million would reap an average tax cut of $265,000. When, under the Bush administration, the capital gains rate was lowered to 15 percent, it not only exacerbated the growing income disparity in America (many of the rich earn most if not all of their wealth from capital gains: that is why Romney pays an effective rate of less than 14 percent). The capital-gains rate cut also helped fuel the asset bubble that led to the greatest financial collapse in 80 years. Ryan’s budget would eliminate the capital-gains tax altogether. But, since we must all tighten our belts, he proposes to help offset the revenue loss by eliminating the child tax credit!
As Lofgren observes, “Republicans’ caterwauling about deficits and debt is eyewash to gull the public into believing they are serious fiscal stewards. Their rhetoric is intended to camouflage their real objective, which is to slash taxes for their wealthy contributors.”