Ever since Ronald Reagan accepted the teachings of Arthur Laffer and became a born-again Supply-sider, Republicans have been required to genuflect on the altar of Supply-side economics, which believes that leaving money with the rich allows them to create jobs.
Since Romney is a member of the wealthy 1% and only paid 14% of his income in taxes, it is reasonable to assume he was also a true-believer of Supply-side economics. Interesting, there is reason to suspect he may instead be a closet Austrian economist, who believes in balancing the budget even if it means tax increases for the rich.
His team has leaked that he is willing to cap the interest deduction on home mortgages for high-income earners. This is tantamount to a tax increase.
He thinks the tax exemption for interest earned on municipal bonds needs to be reduced. This is tantamount to a tax increase.
He wants to limit the exclusion from gross income for high-value executive employer-provided health insurance. This is tantamount to a tax increase.
He even wants to end the exclusion for earnings on life insurance policies. Again, this is tantamount to a tax increase.
Of course, all these tax increases could be offset by a decrease in the highest marginal tax rates, but it tells me that Romney might be willing to come out of the closet and actually balance the budget. If so, he will be the first Republican since Reagan to actually do so.
I've got my fingers crossed . . .
Since Romney is a member of the wealthy 1% and only paid 14% of his income in taxes, it is reasonable to assume he was also a true-believer of Supply-side economics. Interesting, there is reason to suspect he may instead be a closet Austrian economist, who believes in balancing the budget even if it means tax increases for the rich.
His team has leaked that he is willing to cap the interest deduction on home mortgages for high-income earners. This is tantamount to a tax increase.
He thinks the tax exemption for interest earned on municipal bonds needs to be reduced. This is tantamount to a tax increase.
He wants to limit the exclusion from gross income for high-value executive employer-provided health insurance. This is tantamount to a tax increase.
He even wants to end the exclusion for earnings on life insurance policies. Again, this is tantamount to a tax increase.
Of course, all these tax increases could be offset by a decrease in the highest marginal tax rates, but it tells me that Romney might be willing to come out of the closet and actually balance the budget. If so, he will be the first Republican since Reagan to actually do so.
I've got my fingers crossed . . .
