Saturday, September 29, 2012

The Romney tax policy

Conceptually, it's not more regressive than what we have but it's being labeled as such by Obama supporters who conflate marginal tax rates with effective tax rates.

Lower marginal rates on a broader base of income is a step toward real tax reform.  Reduce the mountain of deductions, credits and incentives -- apply lower marginal rates to a greater aggregate of taxable income and in the process remain revenue neutral while simplifying the code.  What's wrong with that?

The problem for Obama's supporters is that remaining revenue neutral might help curb federal spending.  Fomenting class warfare is often an effective way to divert the conversation away from government spending.

(This is a CEO, not a Community Organizer)