Rich people were rich before George Bush decided to give them trillions in two massive tax cut. The idea back then was that giving rich people more money would automatically result in the middle class and the poor getting more jobs. The idea was not a new concept, it was also tried over 30 years ago in the Reagan administration, thus bearing the name Reaganomics also known as Trickle-Down Economics. But all Mr. Bush succeeded in doing was a huge transfer of wealth from middle class America to the rich. And the country plunged into a massive recession comparable to the Great Depression of the 1930’s.
So naturally, Mitt Romney’s goal is to try the same tactics Bush failed at if he become president.
Mitt Romney is promising to extend the Bush Tax Cuts for the wealthy, in hopes that history would not repeat. His hope is under a Romney administration, wealthy Americans earning millions and billions of dollars would see the light and hire more people. Americans already lived through this disaster, but Romney is promising to do it all again.
In an interview with Bob Schieffer which aired on CBS, Romney was asked to explain how he plan to pay for yet another colossal tax cut to people who don’t need it. His answer basically amounted to – I don’t know how I’ll pay for it, but just trust me.
SCHIEFFER: You haven’t been bashful about telling us yo want to cut taxes. When are you going to tell us where you’re going to get the revenue? Which of the deductions are you going to be willing to eliminate? Which of the tax credits are you going to — when are you going to be able to tell us that?
ROMNEY: Well, we’ll go through that process with Congress as to which of all the different deductions and the exemptions —
SCHIEFFER: But do you have an ideas now, like the home mortgage interest deduction, you know, the various ones?
ROMNEY: Well Simpson Bowles went though a process of saying how they would be able to reach a setting where they had actually under their proposal even more revenue, with lower rates. So, mathematically it’s been proved to be possible: We can have lower rates, as I propose, that creates more growth, and we can limit deductions and exemptions.
