Should Mitt Romney Pay More in Taxes? >
Punishing the Rich Is a Mistake
We should send the capital gains tax rate straight down to zero
January 31, 2012
About Andrew Roth:
Andrew Roth is the Vice President of Government Affairs at Club for Growth. Previously, Mr. Roth was a securities trader for an established broker-dealer in Omaha, Nebraska, and also the owner and publisher for The Iron Fist of Capitalism, a website that analyzed supply-side economics.
All Americans have the opportunity to pay the same low effective tax rate as Governor Romney. They can save more money, make prudent and smart investment decisions, and then reap the benefits of compound interest over time. That's the principle of economic freedom that allows people to become wealthy in America. Sure, it's not easy to do, but it's not impossible or out of reach for any American.
[See a collection of political cartoons on Mitt Romney.]
Plus, tax rates on investments should be low in order to encourage investing. This builds capital that will create the factories and innovations that lead to prosperity and a higher standard of living for everyone. Conversely, higher tax rates will reduce that incentive. Even worse, it will engorge a federal government that has already proven to be reckless with our tax dollars. Why reward that kind of behavior?
If we really wanted to build up the accumulation of wealth in this country so that everyone can amass a fortune like Romney did, we should send the capital gains tax rate straight down to zero. That would give everyone a huge incentive to start up a new business, invest in new ideas, and create jobs that will spur growth.
[Will Dems Call New Tax Law 'The Romney Rule?']
We should have contempt for those in society who use their power or influence to get special breaks at the expense of everyone else, but that's not what low tax rates on so-called "unearned" income do. We shouldn't make the mistake of punishing all rich people, and those who aspire to be rich, simply by raising taxes on saving and investment. That benefits no one, and hurts everyone in the end.
If we want more tax-paying millionaires like Mitt Romney, we should support the tax policies that encourage that outcome.
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- 3 Myths About Mitt Romney and the Rich.
- Other Arguments
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#1310123
No — Robbing the rich to pay poorly-run Washington is not fair, and not smart
DANIEL MITCHELL, Expert on Tax Reform and Supply-side Tax Policy at the Cato Institute
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#2190162
No — Mitt Romney paid 335 times what the average American paid in taxes
ANTONY DAVIES, Scholar at the Mercatus Center at George Mason University
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#3166158
No — Romney's generous even when compared to the top 5 percent of income earners
DANIEL HANSON, Economics Researcher at the American Enterprise Institute
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#5143188
Yes — Income from capital gains and dividends is the largest contributor to rising income inequality in recent years
VISHNU SRIDHARAN, Program Associate with the Global Assets Project at the New America Foundation
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#6106178
Yes — Mitt Romney should pay more to support the society that made his fabulous fortune possible
STEVE WAMHOFF, Legislative Director of Citizens for Tax Justice
