Monday, July 09, 2012

Bracket Buster

This chart that accompanied a WSJ editorial called Democrats and the Tax Cliff, should come in handy as a reference guide between now and November. It shows the current tax rates by income bracket (and includes capital gains and estate taxes in addition to income), what those tax rates will be in 2013 if no action is taken, what President Obama proposes the rates should be, and finally what Mitt Romney proposes the rates should look like. These four columns (A,B,C,D) are a simple way to see where we’re at, where we’re going, and the choices available.

So if you’re of the mentality that we what really need to do to fix the economy is to make the rich “pay their fair share” you would like the rates in Column C and so should be supporting the re-election of President Obama. If you think that the best way to break free of our current economic stagnation is to put more money into the pockets of people who actually create jobs, you’ll favor Column D and thus be on board with Mitt Romney.

You should also note that despite today’s rhetoric about President Obama pushing for “middle class tax cuts,” the Romney tax plan is the only one that cuts rates for all income brackets.

Discussions about these pressing economic matters shouldn’t be limited solely to tax rates of course. In fact, government spending is a bigger part of the current and future problems and deserves more focus than tax rates do. However, this is a good start and if you put together this chart with a similar one showing the projected current rate of spending, Obama’s spending plans, and Romney’s spending plans, you’d have a pretty good story to tell and a clear choice to offer to voters.