The Obama and Romney campaigns are almost a yin and yang when it comes to how the Government should spend our tax dollars to improve the economy. With all of this information and mixed messages being tossed around its hard for the average (or above average!) American to decide what to believe. In my quest to find answers I will be reading economic white papers from the Romney, Obama, and Libertarian party platforms and discussing here.
The Romney Camp
In the Romney camp’s white papers on what to do with the economy they argue a few basic tenants:
1. The Obama Administration’s policies have hindered growth by –
– Over regulation
– Over taxation
– Deficit spending
– Focus on ineffective short term stimulus rather than long term growth
– Ineffective job creation
2. The Romney camp plans to improve the economy by:
a. Stop Runaway Federal Spending And Debt.
– Reduce federal spending as a share of GDP to 20 percent – its pre-crisis average – by 2016.
– In so doing, reduce policy uncertainty over the need for future tax increases.
b. Reform The Nation’s Tax Code To Increase Growth And Job Creation.
– Reduce individual marginal income tax rates across-the-board by 20 percent, while keeping current low tax rates on dividends and capital gains. Reduce the corporate income tax rate – the highest in the world – to 25 percent.
– Broaden the tax base to ensure that tax reform is revenue-neutral.
c. Reform Entitlement Programs To Ensure Their Viability.
– Gradually reduce growth in Social Security and Medicare benefits for more affluent seniors. Give more choice in Medicare to improve value in health care spending.
– Block grant the Medicaid program to states, enabling experimentation to better fit local situations.
d. Make Growth And Cost-Benefit Analysis Important Features Of Regulation.
– Remove regulatory impediments to energy production and innovation that raise costs to consumers and limit job creation.
– Repeal and replace the Dodd-Frank Act and the Patient Protection and Affordable Care Act. The Romney alternatives will emphasize better financial regulation and market-oriented, patient-centered health care reform.
I’ll be honest – this first white paper leaves a lot to be desire. I found no specifics, but a lot of conservative talking points. It has become clear that to actually learn something further research is needed.
The Obama Administration
Paul Krugman has long been at odds with conservative economic principals. Here he rebuts the Romney white papers totally.