During the first debate session, Romney and Obama went back
and forth on reducing taxes for businesses with Romney stating the 50% of
American workers work for successful small companies whose taxes would go up
under President Obama’s plan. These companies, Romney strongly asserted, are
the job creators. Romney then re-iterated the Republican talking point that the
Obama administration is penalizing success. To this line of reasoning Obama had
no answer.
Here is the correct answer which the President could have
made. I would have said the following:
The problem with Governor Ronmey's one size fits all, supply side solution is
that he states what appears on the surface to be a valid point but is simply bad
policy in the current economic environment. Today, corporations small and large
are holding onto a record level of cash. To lower tax rates on these companies
will give companies better after taxes cash on hand, and only add to the record cash on hand that companies are already not spending on growth and hiring. The problem is that
companies are not spending because they do not have enough demand from consumers
to grow their businesses by spending more money. The reason for this is because
Republican policies over the last 30 years, supply side economics, have
funneled money to the top income brackets and left the middle-class squeezed
and buried. Therefore, in order to increase demand for goods and services and
grow the economy from the middle out ALL tax decreases need to be focused on
the middle-class. We are in a economic situation, caused by republican supply
side blind-ideology, which has consistently reduced the buying power of the
middle-class. Therefore, let me say this again 100%, ALL, tax relief in my
proposal is focused on the middle class . Again, to grow the economy from the inside out, we must focus ALL our
tax relief on the middle-class so that they can energize economic growth
through increased consumption.