I'm not much of an economist, but from everything I have heard in the last four years, the reason for the deep recession is due to lack of demand. The middle class simply does not have enough money to buy things to keep the ball rolling. Profits are at record highs for the big corporations. Exxon Mobile made more money last year than any corporation in the history of history, and I believe Apple surpassed them recently. Everyone says that the corporations are sitting on record amounts of cash.
Meanwhile, Romney, with his buddy, Paul Ryan, have a tax plan that has tax cuts that will add $5 trillion to the deficit, and they say that somehow it will be "revenue neutral" which means $5 trillion dollars worth of government services will be cut, even though there will be an increase in defense spending. This is truly voodoo economics.
The other part of the Ryan Plan is that capital gains tax will be eliminated, from my understanding. Extremely wealthy people, like Romney, make well over 95% of their income from capital gains, as opposed to wages. Thus, with all the tax loophole in place, they will be paying less than 1% of their income in taxes.
Where will the tax money come from to pay for existing obligations, increased defense spending, and the 20% tax cut? The middle class, who have substantially less income from capital gains (if any, at all) will soon find their taxes increasing. They will be able to buy even fewer goods and services than they do now, and stagnation will be worse than we have ever seen.
It isn't a matter about making the wealthy pay their fare share, for the sake of fairness. If the middle class is burdened with even more tax debt, there will be no demand for goods and services to keep the wheels moving.
This is my view.
