Feb. 6, 2016

Mitt Romney Must Offer Solution for Working Poor

It is hard to think about, or address, anything other than Republican presidential nominee Mitt Romney's remarkable videotaped comments at a private fundraiser that came to light this week. Never mind his statement that he got no advantage from his rich parents; that the "silver spoon" he was born with was just being born in America (which evoked former Texas Gov. Ann Richard's comment about George H.W. Bush, that he was born on third base and thought he hit a triple).

What I want to address is the more publicized comments about the 47 percent. A partial transcript: "There are 47 percent of the people who will vote for the president no matter what. All right, there are 47 percent who are with him, who are dependent upon government, who believe that they are victims, who believe that government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you-name-it. That that's an entitlement. And the government should give it to them. And they will vote for the president no matter what. ... These are people who pay no income tax. ... So my job is not to worry about those people. I'll never convince them that they should take personal responsibility and care for their lives."

The Tax Policy Center (per Brad Plumer of the Washington Post) notes that of the 47 percent of Americans who pay no income tax, more than 60 percent pay payroll taxes. What about the rest of the 47 percent? A bit more than 10 percent are elderly, and 7 percent are non-elderly with incomes of less than $20,000.

Romney will take plenty of hits for his apparent disdain for half of the country, including the poorest of the elderly in America. What struck me first about it was the slap at the working poor. For decades, going back to Presidents Richard Nixon and Gerald Ford and continuing through Ronald Reagan and the two George Bushes, Republicans were champions of the earned income tax credit, which began in 1975 and was expanded in the 1986 tax reform, again in 1990, 1993 and 2001.

Why was the EITC popular in Republican ranks? Because conservatives wanted to reward work and to try to make sure that low-income people who did work, who put in their 40 hours or more, were able to fulfill the basic social contract - work hard, you will have a roof over your head and food on the table. The EITC, along with other tax cuts for low earners, some done as trade-offs to get tax cuts for higher earners, were ways to reduce welfare but were also done to exalt work. And the fact is that the EITC and the Bush tax cuts have more to do with that 28.3 percent who work and do not pay income taxes than anything else.

It tells us a great deal about what has happened to the Republican Party that policies supported by both parties and designed to keep people working and letting them have the basic things that a family needs are now viewed with disdain;  that these people working 40 hours a week are now called "takers" who "won't take personal responsibility and care for their lives."

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