Taxes

Taxes:

LINK: http://www.washingtonpost.com/business/romney-tax-plan-adds-600-billion-to-deficit-analysis-says/2012/01/06/gIQAO0y5eP_story.html

SUMMARY: Republican presidential hopeful Mitt Romney’s tax plan for when in office involves many tax cuts and is expected to add $600 billion to the debt. While this seems steep, presidential candidates Newt Gingrich and Rick Perry have plans involving adding over $1 trillion and $995 billion, respectively. These tax cuts by Romney are supposed to help out the middle class, with most of the cuts aimed toward middle-income citizens. While the taxes involve making the debt deeper, the current plan to a reduction in overall spending is looking to save $1 trillion.

APPLICATION: Romney’s middle class tax cuts are an example of the political beliefs and behaviors of Americans. Most middle class people are in families: married, often with kids and they live in the suburbs. This demographic is most likely to vote Republican, Romney’s party, because of their family, middle-of-the-road beliefs. If Romney pleases the middle class, he will get their votes and be more likely to win the election.

OPINION: I think cuts need to be made. They will be tough to live with but until the debt crisis is under control, the government needs to cut down on spending and at least keeps taxes where they are so we can make fast progress. If cuts are made and tax cuts aren’t made, it will do nothing but ensure a quicker road to financial stability.