The media has been reporting that Mitt Romney paid a lower effective tax rate than the “middle class”. No he did not, the middle class as defined by up to $75,000 in taxable income paid less than 9% effective tax rate in 2011. In order to get to this assertion the media calls Social Security and Medicare a tax.
I find it incredibly ironic that the left suddenly considers Social Security and Medicare a “tax”. Aren’t these government entitlements or benefits? Current beneficiaries are also getting dramatically more money out of the system than they put in- it is one hell of an investment for them. I call it a Ponzi scheme and I stopped counting on ever getting my money out a very long time ago.
Now onto tax rates; cutting tax rates has happened 4 times in American history once even under JFK. All 4 times revenue went up not down and the rich paid a greater percentage of the revenue than before. The president who last cut capital gains Georg— oh wait; Bill Clinton- also generated greater revenues after the cut. How can this be? It is actually quite simple, people changed their behavior and the economy grew enough to cause revenues to rise. We need a broader tax base and lower overall rates to get our economy moving. We need to encourage investment and stop taxing income multiple times. I would prefer a consumption tax or flat tax but the bigger problem is endless government spending not tax revenues. The fair tax as embraced by many Republicans would be a great start.