Friday, August 31, 2012

"A Big New GOP Idea"

By Dan Reed, American Citizen

The 2012 presidential campaign has begun, and conservative Republicans have officially nominated Mitt Romney and Paul Ryan as their party’s candidates. So, once again, Americans are learning about the GOP’s Bold New Idea’s: Cut taxes, Increase Defense Spending, and reduce Regulations on Business!

Candidate Mitt Romney’s bold new idea’s include a 20% income tax cut, reducing corporate taxes from 35% to 25%, increasing defense spending, and eliminating regulations on business!

TAX CUTS - Romney’s promised tax cuts would represent the Fifth Installment of massive tax cuts enacted by GOP conservatives since 1981. During this thirty-two year period, America’s national debt has exploded from $900 billion in 1981 to $16 trillion today! Meanwhile, America’s infrastructure has decayed, the rich got very rich, and the middle class and poor got poorer! Here is the history:

1.     Public Law 97-34 – The Economic Recovery Act of 1981, cut individual tax rates by 25%, and lowered the top tax rate from 70% to 50%

2.     Public Law 99-514 – The tax reform Act of 1986, significantly cut the progressive tax system by eliminating eleven of the top fifteen tax brackets that had been in place for 70 years, and lowered the top tax rate from 50% to 28%.

3.     Public Law 101-508 – The Omnibus Budget Reconciliation Act of 1993, which created a new 31% income tax bracket.

4.     Public law 107-16 – The Economic Growth and Tax Relief Reconciliation Act of 2001, significantly reduced individual, corporate and capital gains taxes. EGTRRA was so complicated that complete texts were written to just explain the massive number of  “reforms” encompassed within the Act. The law was extended through 2012, and is due to expire on 12-31-2012.

Furthermore, The We Believe In America Crowd continues to blackmail the United States by stashing $2.5 trillion of taxable profits offshore, while demanding a repatriation-tax holiday that would reduce their tax rate obligation, from 35% to 5%. To put it Bluntly, they are trying to rob $70 billion from the United States Treasury, while chanting; USA, USA, and USA…!

 INCREASE DEFENSE SPENDING - We have now heard candidate Romney’s tough talk on foreign policy, where he criticizes president Obama’s handling of: Iran’s nuclear program, missile defense in Poland, Israel security, and Russian president Vladimir Putin. 

Candidate Romney’s tough foreign policy talk sounds very similar to the Bush-43 administration Neo Cons that lead America into the wars in Iraq and Afghanistan. These Neo Con policies drove defense spending from about $400 billion too $700 billion during eight years of the Bush-43 administration.

Current defense spending includes the war in Afghanistan, Star wars missile defense, Naval policing of Global ocean trade routes, military bases and ports in over 128 countries, and a limitless smorgasbord of weapons systems that create jobs in politically powerful congressional districts. The vast majority of current defense spending was created during the Reagan, Bush-41, and Bush-43 administrations.

Romney has promised to increase current levels of defense spending. However, he has not provided any specifics. So what will Romney do? Based on thirty-two years of GOP history, Romney will go to war with Iran, increase spending on star wars missile defense, continue spending on weapons systems, and restart the cold war with Russia!

REDUCE REGULATIONS ON BUSINESS - Conservatives believe that government regulation of business represents a major government intrusion into the free market! They believe the free market is self-correcting, and therefore does not require any government involvement.

Candidate Romney repetitively promises to remove cumbersome regulations on “Small Businesses job creators”. So, which regulations would Romney eliminate? Based on his many comments, we can speculate on a few: Dodd-Frank Banking Regulations,  Sarbanes-Oxley Act, Clean Air Act, Clean Water Act, and the Hazardous Waste Act.

To clarify, many business regulations were either eliminated, or not enforced during the administrations of: Reagan, Bush-41, and Bush-43. Deregulation clearly helps business increase profits! However, there have been economic consequence associated with GOP deregulation mania, here are twelve examples:
  1. U.S. Savings and Loan Banks Collapsed,
  2. Enron, Country Wide, Tyco, Adelphia, Perguine Systems, World Com, and Leman Bros frauds, etc. These large unregulated corporations robbed investors of Billions!
  3. Bogus Corporate financial statements
  4. Bernie Madoff frauds,
  5. The sub-prime mortgage housing scam,
  6. Bogus OTC Derivatives,
  7. Bogus Credit Default Swaps,
  8. Junk Bonds, repackaged into Collateral Debt Obligations (CDO’s), known as toxic assets,
  9. Wall Street Banks collapsed
  10. $1 trillion in tax payer bailouts of corrupt banks,
  11.  No title mortgage foreclosure frauds,
  12. $2.5 trillion offshore tax frauds.


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