Mitt Romney’s Economic Plan Will Severely Impact African Americans —Tax Increase for Black Households
Although economics is rarely discussed in the African American community, and the LIBOR scandal and what is going on in Europe is of interest to a only few of us, if Mitt Romney wins the presidential election in November, many African American families will see their taxes increase, while 100 percent of millionaires will get a tax cut, according to the Center for American Progress Action Fund.
Mitt Romney, like many current house and senate GOP members, is adamant against putting measures in place to increase job growth. Romney’s approach is to continue the past failed supply-side policies of President George W. Bush while at the same time, slashing investments directed toward the middle and lower classes. His approach would be the same as the House Republican budget developed by Rep. Paul Ryan (R-WI).
Romney’s claims that cutting spending will lead the wealthy to invest more in job creation. Not to mention Romney has yet to indicate what cuts he would make to pay for his tax breaks for the extremely wealthy. What is known is that his budget and policy proposals would deplete Medicare, Medicaid, and the Children’s Health Insurance Program by $3.4 trillion over the next 10 years as well as cut compensation payments for disabled veterans by one-quarter, and 13 million people already hit hardest — mainly African Americans— would be kicked off the Supplemental Nutrition Assistance Program
African American workers’ jobless rate in 2011 has been estimated at more than 22 percent in 19 major metropolitan areas, according to new data from the Economic Policy Institute (EPI). Overall, the black unemployment rate was two to three times as high as that of whites.
Romney doesn’t seem to understand that America’s metropolitan areas need more economic stimulus programs, particularly infrastructure investments and aid to state and local governments. In addition, Romney’s economic plan fails to address issues of a continued lack of aggregate demand, given the lack of job growth indicates that big corporations are very reluctant to hire, instead choosing to sit on record levels of cash.
What team Romney is suggesting is what is the exact opposite of what is needed, in particular in the African American community. Romney’s proposals ignore and avoid the significance of investing in education, infrastructure, and research and development. This although short-term, will assist in long term economic growth and job creation. Unfortunately, Romney would prefer to lay off more teachers and public sector workers in his lost and myopic focus of deficit reduction. He has clearly not paid attention to what is occurring across the pond, for despite clear evidence that spending cuts are slowing economic growth, Mitt Romney has a plan that doubles down on the same austerity measures that we see have crippled Europe, and we all know that African Americans will be hit the hardest by such a policy.