The solution is simple: American individuals and businesses should be required to file and pay taxes only in their country of residence — just like the citizens of almost every other nation on Earth. For all his economic acumen, Romney has not made this straightforward proposal.
But perhaps most troubling is Romney’s inability to translate Obama’s tax policy as it pertains to jobs.
Two-thirds of American companies are small businesses, known as Chapter-S corporations, and they pay taxes at the same rates as individuals. This is not widely understood by the general public, or by politicians — indeed, a senior Congressional Republican recently told me that half the House Budget Committee was unaware of this fact. Moreover, these small businesses create 70 percent of America’s new jobs.
So, when Obama talks of raising taxes on “millionaires and billionaires” or, equally absurdly, “those who can afford it,” he is saying he will raise taxes on small business. Whether he realizes this or not, one cannot know (and those who still suppose Obama’s brilliance precludes him making such rudimentary mistakes should consider the tax burden of the average Navy “corpse-man,” whether he is stationed overseas or in one of the 57 states). Either way, Obama’s plan cripples job-creation.
If Romney wants to win this election, he must clarify his tax proposals — while exposing Obama’s, as well.
Theo Caldwell, an international investor and broadcaster, has been a member of the New York Stock Exchange, the Chicago Board Options Exchange, the American Stock Exchange, and the Kansas City Board of Trade. He can be reached at theo@theocaldwell.com.
