Mitt Romney wasted no time in offering an alternative to President Obama’s most recent call to extend the Bush tax cuts on income up to $250,000. In an interview with Radio Iowa yesterday, Romney pushed the myth that the end of the tax cuts at the top end of the income scale will hurt small businesses and job creators, then called for extending all of the cuts, including those at the high end, “indefinitely“:
“The president’s announcement that he plans on extending (the tax cuts), just for certain classes of Americans — what he’s really saying is that those that are job-creators and small businesses are going to see a massive tax increase,” Romney said, “and that will kill jobs.”
“The president’s plan is aimed at small business and job creators. It will kill jobs in this country and hurt the middle class,” Romney said.”The right answer is to extend the tax rates as they current exist indefinitely, until we put in place an entirely new and reformed system.”
The “entirely new and reformed system” Romney envisions is little more than the Bush tax cuts on steroids: a 20 percent, across-the-board tax cut that is a massive giveaway to the richest Americans. Romney’s plan would cost $10.7 trillion — four times the size of the Bush tax cuts — and would be a “mathematical disaster” that would blow an bigger hole in the federal budget than even Bush managed. Romney claims none of this will happen, but his plans to pay for it don’t come close to covering the cost.
The evidence also doesn’t back up Romney’s claim that allowing the expiration of the high end tax cuts will “kill jobs.” Job creation and economic growth were better when the top tax rate was higher, and the years following the Bush tax cuts were filled with anemic job and economic growth.