Clinton explains Romney’s tax plan in simple terms: Rich get $250,000 tax cut (Video)
He has his flaws, but after all, no one is infallible and despite some of them being publicly broadcast, the Democratic National Convention did not have to hide him like the Republicans did with George W. Bush at their Tampa convention. The Democrats flaunted former president Bill Clinton, for faults and all, he is one president who can make the complicated simple by breaking it down and stripping the other side’s spin to the bare bone, exposing the irrational and illogical lurking below.
Click on the video above for a quick easy lesson on Mitt Romney’s tried and failed “trickle-down economics.” Clinton explains why the GOP’s presidential nominee’s deficit plan cannot stand up in the face of plain old logic, calling it “illusion over arithmetic.”
Here is some of what the former president had to say:
Clinton: "In the debate, Gov. Romney says he was really not going to cut taxes for the upper income people, he was only going to cut taxes for middle income people, but that’s not true.”
Here he explains Romney’s $5 trillion tax cut as follows:
“He (Romney) said we should deal with the debt by first of all cutting revenue by $5 trillion. (Their idea is step one; lower income tax rate by 20 percent). That means incur $5 trillion more debt."
- Alternative minimum tax.
- High-income Medicare tax.
- Estate tax.
- Corporate tax cut
That all adds up to the $5 trillion.
President Clinton then asked that all important question: How will Romney pay for all those cuts? He said the GOP nominee’s solution is to repeal loopholes. These loopholes proposed are:
- Eliminate tax benefits for high income tax payers.
- Eliminate corporate tax loopholes.
“But all analysis show that getting rid of all those home mortgage deductions and all the charitable deductions still will not close the deficit gap,” explained Clinton, adding that there would still be $ 1 trillion unaccounted for. (That fuzzy GOP math again).
Clinton then breaks down the hidden lies within Romney’s plan as only he can, “Then Gov. Romney says he doesn’t have a tax deduction for upper-income people, but he does. I know how this works, for I am one of those folks—If I get Gov. Romney’s 20 percent income tax cut and you take away my home mortgage deduction, charitable deduction, my deduction for state and local taxes and any other tax deduction I have and I will still get a tax cut equaling $250,000 a year.”
While high earners will get that huge additional break, middle income earners will see their taxes go up by an average of $2,000 a year.
Didn’t quite get it above? Here is the simple, itemized version of how Mitt Romney’s plan works:
People making $3 million or more: 20 percent income tax cut.
- Home mortgage deduction.
- Charitable deduction.
- State and local taxes deduction.
- Any other tax deduction I have.
All these deductions will still give these high earners a $250,000 tax cut.
“We simply cannot afford to give another round of tax cuts to people who got the benefit of the tax cut and the economic growth for the last decade. It hasn’t worked before and it won’t work this time,” said the former president.
Looking for a stark difference between Obama and Romney? There it is above in plain “arithmetic over illusion.”
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