3 votes

The REALITY of Mitt Romney's "budget plan" and policies - DEEP recession

http://ian56.blogspot.co.uk/2012/10/the-reality-of-mitt-romn...

The REALITY of Mitt Romney's tax plans & policies
The reality of Romney's tax plans and policies in squeezing the middle classes and the true wealth creating small and medium sized businesses would be a deep recession.

Romney would favor large corporations over small/medium businesses squeezing them even harder.

Whilst a large multinational might (and currently does) pay circa 10% or less in US Corporation tax, the revenue from the 30-35% corporation taxes on small/medium businesses would decline along with their profits.

Under Romney the deficit would SOAR, there WOULD BE a significant recession, unemployment would go up significantly along with the cost of welfare payments to the poor.

To make Romney's budget work you need an average of 5%+ GDP growth for 20+ years.
Trend growth for the US for the last 60 years or so has been about 3%.
But this ignores above par growth in the 80's and 90's due to massive monetary inflation (see Appendix 1) which is now being unwound.
Real GDP growth since GW Bush was inaugurated in January 2001 to end of 2011 has averaged less than 2% http://www.indexmundi.com/g/g.aspx?c=us&v=66

Romney plans on closing $700bn p.a. of tax loopholes by 2022 but he won't name a single one - they would disproportionately affect the middle classes.

Of course the biggest tax loopholes will NOT be closed.

Carried interest - which makes Romney personal tax bill so low.

The Double Norwegian which allows US multinationals to book profits offshore to avoid paying US corporation tax,

The Ryan plan would of course allow Romney to have a personal tax rate of less than 1%.
Which would save Romney around $90m on his personal tax bill over an 8 year term.

Even Romney does not sniff at getting paid over $10m p.a.

Then of course there would be all the favors shown to Bain Capital.
Romney would tell Bain which sort of companies to buy and then issue lucrative government contracts, probably at hugely inflated prices, to those Bain companies.

That would probably make Romney more than the $10m p.a. he would make on his personal tax bill.”

Mitt Romney's vision of America
(image in link above)

More details on the Romney/Ryan "budget plans".
http://ian56.blogspot.co.uk/2012/08/the-absolute-insanity-of...

Appendix 1
US money supply growth 1950 to 2012
(image in link above)

Despite massive monetary easing by the Federal Reserve since the housing bubble collapsed in 2007/8, US money supply has remained static.
The reason for this is that over indebtedness of the public and corporations is being paid off or liquidated.
(The government is borrowing more than ever.)
It will take a very long time to pay down this debt, probably 20 years plus, before trend growth rates can resume once again in the US.

A massive tsunami of economic woes is about to land on America's shores from Europe's over indebtedness.
Europe is America's largest export market.



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Some of my faith in this site has been restored

I thank those who showed some support.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

Here is a visual to add to your blog

Check out the chart for the Base Defense Budget Plans

http://ricks.foreignpolicy.com/taxonomy/term/4651

There are several good elements in that article

but it has been written by someone who is very uninformed.

Obama's military budget for 2012 is $1,219bn NOT the circa $535bn mentioned.
http://archive.truthout.org/the-real-us-national-security-bu...
(BTW the above article was given to me by an ordinary Dem.
We do have quite a few anti war allies who are ordinary Dems and there is Kucinich.)
Loads of Dems are also anti banks - but have not yet reached an understanding to be anti Fed.)

Did you realise that not even the cost of maintaining the US's nuclear weapons is included in the DoD budget?
The cost of operations in Afghanistan - not included.
Loads of other things come out of other departments budgets - e.g. veterans pensions.

I had Romney's proposed increase over Obama as $1.8tn (first term).
It might well be $2tn as mentioned in your article.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

I'm reading--

economics aren't my forte; I have tried; I'm not a big investor; I'm in the lower income bracket but have always paid my own way--

all I know is that I don't like Romney's way of 'earning' money (vulture capitalism)--

Don't give up; many of *us* are discouraged by the present campaign fiasco/joke--

we survive by doing a lot of physical labor, in spite of being college educated--

taking a break from hauling in firewood right now--

Don't stop trying; keep thinking; keep posting--

it's hard to be awake; it's easier to dream--

you think corporate greed is what killed the economy?

try talking about the fed and government regulation for once. it also had to do with chinese economy booming putting a real 'squeeze' (as opposed to your fairytale one) on the us economy. but that's beyond what your abysmally simple approach could ever hope to address. lowering tax on one sector isn't going to put a squeeze on the other in the current system because of fractional reserve, money velocity increases and some hot money will affect other sectors if there is more to go around instead of everyone hogging it as is the current situation. learn economic 101 pls

what's a progressive doing on dp

You sound like a progressive and a protectionist

The Chinese didn't put the "squeeze" on the American economy.
They competed the best way they knew how with cheap uneducated labor.
It's called free markets and capitalism and the Wealth of Nations.

Deregulate the US economy to lower the cost of doing business and make America more competitive.

Lower taxes right down to zero - you don't have to pay US workers so much in gross salary - they will be just as well or better off, if they didn't have to pay for government mismanagement, bureaucracy, corruption, inefficiency and foreign military adventures - America becomes more competitive overall.

Restore the Rule of Law.
Make the Corporations pay for any harm that they do, not get the occasional slap on the wrist for government PR.

China didn't start any wars but they took over half of Africa in trade deals.

Stop the Fed's inflation tax and outright stealing from the taxpayer to give free money to banks who then speculate with it to raise the price of oil and food and other basic needs.

Improve the education system - DRASTICALLY, actually educate people to critically think, not drones built to blindly obey the authorities.
And if people are not academically gifted, train them in something they are good at - plumbers and car mechanics etc. can make good money.

Don't force people to go to college for jobs that don't need it and load students down with debt, when on the job training or apprenticeship is better for that type of work.

LOADS of things could be done to make America more competitive and prosperous.
I am just getting started.
Romney advocates NONE of them. (Neither does Obama.)

Why are there 9 new chip fabrication plants built in China for every 1 built in America? (I don't have exact nos - but it's something like that.)
That's not a labor cost issue.
It's a government regulation and general business environment issue.

Why does Switzerland remain high on the business competitive table AND have high labor costs?
Switzerland is prosperous and enjoys a high standard of living.
Why is the US slipping down the business competitive table and getting poorer?
Why is Switzerland prosperous and the US is not?
They are competing with China just as much.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

Do you even realize the Federal Reserve is a private bank...

you could even say it's a corporation, they make money and they sell it. We all are FORCED to use it so when they intervene in setting interest rates like ZIRP or bailout like TARP that is done with the intentions of GREED and power!

A progressive? Ian is far from a progressive, I've had the pleasure of discussing a wide range of topics with him and find him to be very conservative.

To Ian: Don't leave, your posts are valuable.

"Fairy tales are more than true; not because they tell us that dragons exist, but because they tell us that dragons can be beaten."
— G.K. Chesterton

The Fed is a government backed cartel.

If it were just simply a private bank, it wouldn't have the power it has.

It has a government enforced monopoly on the creation of money.

It is a partnership between private interests and government.

That's what we call fascism.

It's not exactly just a "private bank".

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

It is a private bank!

The shareholders are guaranteed 6% back every year. They use the IRS as their collection agency. Get a clue, better yet read Ron Paul's "End The Fed".

"Fairy tales are more than true; not because they tell us that dragons exist, but because they tell us that dragons can be beaten."
— G.K. Chesterton

Did all that just fly over your head?

Are you denying that it has a government enforced monopoly, and that it owes all its powers to government sanction?

Do you know what a cartel is?

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

You are both right

Tailor your argument to your intended audience.
That's what advertisers and marketing people do.

There is no need to be insulting or arrogant because someone explains why the Fed is a bad thing in a different way.
I happen to think Atticus explained things in a much better way for an uninformed audience (which after all is what we are trying to do, if we want to grow).
Others might think differently.

Selling an idea is much the same as selling soap.
You have to hit on a message that hits a chord with your audience - tell them what will it do for THEM.
Learn from the neocons - they did a great job of selling their despicable brand.
They learnt from advertising and branding.

Sell a brand that is good for people and makes them healthier, wealthier and wiser.
Go out and sell Ron Paul's brand.

Don't get stuck on details and semantics.
Different wordings will work better on different people at different times.
We are in the business of persuasion.
It's called politics.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

It can't be both?

The greed of both the federal government and the corporations and lobbyists they've hopped into bed with have combined to ruin our economy.

I don't play, I commission the league.

I have now given up on Daily Paul because of people like you

We will never succeed in a million years to restore the Constitution with your self satisfied smug approach.

Twitter people are far more aware about how to approach things, than the people left on here.

The people on here DO NOT EVEN TRY to get a message out to potential new converts - 80% of the people on here at least.

I am sick of your APATHY and appalling approach.

I won't post an article again.
I will vote up and probably comment on anything of potential practical value to restoring the Constitution for the United States.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

Dont give up

Dont let a couple of assholes get you down. I enjoy your articles, I can tell you put a lot of work into them and theyre very informative. Keep doing what you need to spread the word. Remember, rp dealt with a lot worse then trolls in a forum :)

My most fervent wish is that some more people on here

learnt to be better political campaigners and less naive idealists like you.

Gary Johnson certainly hasn't learned how to be an effective political campaigner.
http://ian56.blogspot.co.uk/2012/09/what-approach-will-gary-...

Ron Paul NEVER learnt how to be an effective political campaigner to take his message beyond the <10% who get it and into a wider mainstream audience.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

So YOU don't think the Fed is about corporate greed?

nm

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

My approach is to try and educate the extremely ignorant

American public.

Not Ron Paul people.

Do YOU really think that people are going to listen to stage 9, when they can't get past stage 1 because of all the media propaganda?

It is you that is being naive and impractical not me.

Try reading some of my blog posts on the Fed or the risks to the Petrodollar.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."