We’ve all heard President Obama Vice President Biden, their campaign and surrogates screaming on the top of their lungs that Romney’s math doesn’t add up. In other words that without raising taxes, you can’t balance a budget. So here is this simple analogy to put Romney’s math in perspective, in simple terms for all to understand.
My business has to raise capital I need more revenue for an expansion of my business, I have two options, I can either raise the prices on my merchandise thereby increasing my revenue, or I can make a huge storewide sale and offer everything for 25% off.
An experienced businessman would do the latter, offer merchandise at discounted rates, and thereby get his customers to spend more and attract new customers to purchase at his store. An inexperienced CEO would just raise the prices of all his merchandise, and thereby turn off customers from buying at this time.
Obama is all for raising prices/taxes, and turn off potential customers/workers and businesses from buying/working and doing businesses here resulting in lower revenue. Romney wants to offer discounts/ lower taxes, and attract more shoppers/workers and businesses to shop/do business here, resulting in higher revenue. That’s exactly where the math adds up, what you lose in the tax cuts you gain by additional tax payers that are added to the work force.