This is the concept the liberals do not understand. If you cut taxes, people have more money to spend. If they spend this money, it creates more jobs. If it creates more jobs, you have more taxpayers. If you have more taxpayers, your tax revenue will increase. Kennedy, Reagan, and Bush did this, and every time the economy boomed soon after and the Feds took in more taxes. If the economy grows by 4% each year, it will create the 12 million jobs Romney said it would do. The economy MUST grow by 3% each year just to break even and keep people employed. Historically it has grown over the last 100 or so years an average of 3+ percent, even counting the Great Depression. You must grow the PIE bigger so everyone will get a bigger slice of pie. Obama through his communist teachings, thinks the economy doesn't grow or shrink, but remains the same. If government employees increase, who is going to pay their wages. The government doesn't produce anything to sell for profit, it is a parasite and is only supposed to do things the private economy won't do like roads, the military, etc. It can take taxes from producers (corporate income tax), consumers (sales taxes), workers (income tax), investment profits (capital gains on stocks or property (equity)). Anywhere they want to tax. Problem is. Producers pass the tax on to the consumers. Also if their tax it too high, they go out of business. If consumers and workers pay too much, they can't afford to buy much. If a farmer dies, and you don't get rid of the inheritance tax, the family farm is sold to pay taxes. Either a farming corporation buys it, or it is subdivided into smaller lots for urban sprawl. If the capital gains tax on stocks is too high, people will no buy stock in producing companies, thus the companies can't raise the money for plant expansion or improvements for more production, so they move overseas. No matter which way you cut it, raising too much in taxes results in a hurt economy. This is especially true if the government spends more than they take in. Clinton raised taxes slightly, but the republicans in congress had balanced the budget, and the government wasn't spending more than it too in taxes. Debt was being paid down, thus banks had more money to loan at lower rates.
There are only three ways to get rid of government debt and balance the budget.
1) raise taxes, can't right now because it hurts economic growth, makes things worse.
2) grow the economy, this is done through trade agreements, lower taxes, especially on producere, and streamlined regulations.
3) drastically cut the budget, like welfare, food stamps, military, social security, medicare, medicaid, Obamacare, foreign aid.
I think Romney is smart enough to know these things. Liberal communists are not. EVERY WHERE their ideas have been tried it stiffled economies, or the economies completely collapsed.
Economics 101 and 102 at Auburn University. Not some Ivy league school. SEC.
