Mitt Romney's indictment of the Obama record on the economy is convincing, polls show, but he has trouble selling his tax plan. It doesn't add up, Democratic critics and their friends in the media say. However, a simple short statement might help Mr. Romney explain what he expects to happen.
Tax cuts give people more money to spend and invest; tax increases give them less, and the economy reflects the difference. However, Democrats and the Congressional Budget Office use a "static analysis" to chart the effect of tax cuts and tax increases on the budget. They calculate wrongly that people's spending and investment behavior is not affected by tax changes. The Romney plan does anticipate how tax policy will affect the economy and therefore the budget and debt. That is why Romney is right to refer back to John Kennedy and Ronald Reagan. Their lowering of the tax burdens in their times led to enormous economic growth.
Let's see, that takes about 40 seconds; an easy sound byte. I wish I'd heard it last night.
