Mitt Romney's economic plan

It has taken me longer than it should have, but I have finally read the entire economic plan put forward by Mitt Romney. While the plan has the usual Republican points in the main, I have to say that I am disappointed. Much of what the plan contains is what I would call tinkering around the edges of the economy. For example, Romney says he wants to make the Bush tax rates permanent. His other personal tax proposals are to eliminate the death tax and to remove taxation for capital gains, interest and dividends from those with incomes below 200,000 dollars. He also talks about coming up with an overall fairer system, but this comes across as unserious since he does not bother to explain what he would want in that regard. Romney's corporate tax plan is to cut the marginal rate to 25% from 35% and to allow repatriation of earnings from overseas without additional US tax. In short, all of Romney's proposals do not go to the heart of the American tax problem. Right now, we have about half of the people who do not pay any income taxes. Among those who do pay taxes, the burden is split unfairly due to the many special loopholes and deductions that have seeped into the code over the last 50 years. We now have an opportunity to get rid of the loopholes and special favors for those with political clout and replace the tax system with a fairer, flatter tax. Romney pretty much ignores this whole prospect.

On the trade front, Romney wants to confront China on its currency. We are to force the Chinese currency to float higher. Who knows, maybe that would work. But what if it does not? Romney could be starting a trade war with a country that has massive amounts of dollars and treasury bonds. China could cause massive damage to the American economy, and the government in China may feel secure enough to do just that.

Romney has some interesting ideas on regulatory control and energy. On this part, I think he is on the right track. Still, he talks in general terms about the need for developing alternative energies rather than being specific. There is no question where this effort should focus, but Romney is not going there.

The nature of Romney's plan is the opposite of the 9-9-9 plan of Herman Cain. Romney has a full plan while Cain has little more than a slogan. Nevertheless, Cain's plan has the virtue of simplicity, something that no one could accuse Romney of.

I think that we will need to hear more from Romney of his plans for the economy. It will take revolution and not evolution to undo the damage that Obama has inflicted on the USA. Romney had better recognize that sooner rather than later.