Tuesday, January 29, 2008

Radio show host shreds Mitt Romney

Holy shit. I've never heard anybody shred a candidate like this guy did. And he endorses Ron Paul at the end.

I will admit there's something disingenuous about his tax argument. Americans in the lower half income percentiles don't pay 25% tax rates so they aren't going to suddenly have that money in their pockets. But he's still ultimately correct for several reasons.

First, those tax dollars will move from wasted spending on things the government wants (e.g. spending on our military empire, farm subsidies, special interests) to spending on things the people want (e.g. capital investments in our economy, hospitals, medical training). Second, the largest tax on those in the lower half is the inflation tax (roughly 10%) and that can only be fixed by stopping the Federal Reserve from lending money at below market rates and monetizing debt. Third, despite what all those Keynesians say, it's better to tax consumption than income. Income leads to savings which leads to investment. Investment leads to long-term sustainable growth. The United States has a giant negative savings rate. Our economy is only able to avoid total crisis because of our foreign creditors. That is not sustainable.

But Ron Paul's platform is even better. Just phase the income tax our completely and replace it with nothing. As I discussed in this entry, nearly the entire income tax is used to pay for our military empire.

Update: Haha, I noticed the radio station is 1040. How ironic.

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