This Romney quote sure is generating a lot of discourse! Megan McCardle argues that this issue represents a schism between conservative intellectuals and donors. I think that's a stretch.
She says that both the Earned Income Tax Credit and the child tax credit are very popular among Republican wonks. I agree the EITC is about the best method we have of helping the poor, but I'm not sold on the child tax credit. The point is, however, that 47% of the country paying zero net taxes (or less) is too high. I propose that the largest percentage of people who pay no taxes should be 25. At least 75% of people should make some contribution to the national government (which doesn't include payroll taxes because those are nominally individual-based).
She also says it's foolish to tax Social Security benefits. "...it hardly makes sense to send them benefits, and then tax it all back." Ah, our old friend the straw man. Who said anything about taxing it all back? Should it be treated as normal income? If someone makes $50,000 in Social Security income (for example), should it be treated as normal income? I would argue it should be treated either as normal income or investment income. Either way, some tax should be paid on it. Just because the government pays it out, doesn't mean it shouldn't be taxed! Employees of the government are taxed? Does it make sense to pay them and then tax it all back?
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