The Mitt Romney economic plan
Mitt Romney’s economic plan is more about cuts than growth.
The theory is based on a trickle-down economics formula that depends on large corporate tax breaks and deregulation to increase profits, which in turn, is supposed to flow downward to lower income Americans in the form of jobs.
Below are just a few of the highlights of Mitt Romney’s economic proposals.
Romney budget cuts
Layoff 10 percent of all federal workers.
Cut veterans benefits by 25 percent by 2016.
Cut Medicare 57 percent by 2022.
Cut veterans benefits, food stamps, education, environmental protection, transportation, and Supplemental Security Income 57 percent by 2022.
Romney tax cuts
Create a territorial tax system which allows corporate income earned in foreign countries to be tax-free.
Eliminate the death tax for those with estates valued at more than $5 million.
Eliminate taxes on capital gains, stock dividends, and interest earnings on cash for incomes under $200,000.
Eliminate the alternative minimum tax on corporations, trusts, estates and individuals.
Lower the U.S. corporate tax rate to 25 percent.
Romney regulation cuts
Eliminate all carbon dioxide limits from clean air regulations.
Repeal Wall Street financial and banking regulations.
Eliminate the Consumer Protection Agency.
Eliminate the Affordable Care Act.
Eliminate federal employee worker unions and work toward eliminating all American unions by making all 50 states Right to Work.
Romney economics by the numbers
The Romney economic plan would shrink government spending to 20 percent of gross domestic product. Currently, U.S. GDP is approximately 40 percent.
More than 148 million people, or nearly half of all Americans, would lose more than 50 percent of their income from government payments under the Romney economic plan.
Trickle-down economic policy and drastic budget cuts have two major problems.
Cuts to programs like veterans benefits, Social Security, Medicare and disability, cannot be replaced by trickle-down jobs because the elderly and disabled are not part of the workforce. Under the Romney plan, those people would lose income and health care with no way to replace it. Approximately 80 million elderly and disabled Americans will lose half their income under the Romney economic plan.
While trickle-down economics can increase profit margins for corporations, it does not guarantee job creation the way direct government spending does.
“Corporate profits are now at their highest level since World War II. But U.S. corporations are just letting their cash pile up — nonfinancial companies in the S&P 500 now have more than $1 trillion on hand,” according to Time. They are using that cash to “make acquisitions, repurchase stock or raise dividends, not to create lots of new jobs.”
There would be substantial loss of federal revenue through tax cuts.
Social safety nets would be essentially eliminated by 2022.
Financial deregulation would leave American taxpayers exposed to responsibility for banking industry investment losses.
The elimination of limits on carbon monoxide poisoning would affect all Americans, with air pollution issues potentially spreading across the globe.
Romney’s economic plan represents drastic changes to the American way of life through tax policy, deregulation, and the elimination of most safety net and entitlement programs.