Monday, Oct. 8, 2012 | 2:01 a.m.
I don’t agree with Mitt Romney’s assessment that our debt and deficit problems can be solved without raising taxes. However, this Romney quote, not responded to by President Barack Obama, is part of what concerns me about the president:
“Mr. President, you’re absolutely right, which is that, with regards to 97 percent of the businesses are not — not — taxed at the 35 percent tax rate, they’re taxed at a lower rate. But those businesses that are in the last 3 percent of businesses happen to employ half — half — of all the people who work in small business. Those are the businesses that employ one-quarter of all the workers in America. And your plan is to take their tax rate from 35 percent to 40 percent.”
Higher taxes will be required going forward and President Obama is right about that, but an incomplete understanding of who employs 25 percent of all American workers and the possible effect of higher taxes on those companies is very worrisome.
Both spending cuts and tax increases will be necessary going forward, but they must be instituted carefully and with a complete understanding of our economy or we risk making matters worse instead of better.