Skip to main content

Since the first 10 minutes of the first Obama/Romney debate, I've had a nagging question that I have expected to hear someone - whether the Obama campaign, the punditry, the smart folks at DK, anyone - ask.  Perhaps it is just too simple, or maybe I just don't understand the argument, so if it is the latter, I'm hoping that someone here can enlighten me...

Throughout the entirety of this campaign, we've heard the GOP argue that the prescription for healing the economy is to lower taxes on the "job creators" so that they have "more money in their pockets" to "create jobs," and that these tax cuts will therefore result in a pony, whoops, an explosion of economic activity which will benefit all.

Since early in the first debate, however, the Romney / Ryan position has been that they will lower tax rates but will, for high-earners, cancel out the cut in rates with elimination or limiting deductions, so that the upper income brackets do not pay less in taxes, i.e. their effective tax rate will be unchanged.

Can someone explain to me what the supposed economic effect of rearranging the furniture like this would be?  If we just monkey with rates and deductions so that the ultimate effect is the same effective tax rate on the "job creators," how can this possibly spur any job creation - even if one buys into this trickle-down malarky to begin with?

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site