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.