The Democratic Party put up a funny website that is designed to look like something from the Romney/Ryan campaign, and pokes fun at the fact that Romney’s tax plan is backed up by a complete absence of any salient details.
Now, those dirty redistributive Kenyan socialists at Forbes and the Council on Foreign Relations have an even bigger bombshell to share. Romney/Ryan promise to reduce the income tax on the wealthy by 20% – this costs America $2.5 trillion. They promise to eliminate the Alternative Minimum Tax, costing America $700 billion. A repeal of the high-income payroll tax will cost another $300 billion in revenue. Corporations will get another $1 trillion tax cut.
So, how does the government pay for that, and not affect the deficit? Here’s what Forbes’ Robert Lenzer has to say:
Then, comes the problem, the headache, or maybe its the head fake. No identification of a single loophole that will be closed. No concrete exposition about raising the capital gains tax on rich people. Our friends at the Democratic Party headquarters have estimated the savings for “ending all tax benefits for the wealthy” at $1.7 trillion; eliminating ALL corporate tax benefits to offset the corporate tax cut- $1.1 trillion and then another $1 trillion of middle class tax benefits to pay for the middle class cut=- another $1 trillion.
Imagine the chaos, the bitterness, the social unrest that would occur. But, then realize these measures only get back $4 trillion. There’s another $1 trillion to go.
Even studies by that staunch Republican economist Martin Feldstein and Princeton economist Harvey Rosen “concede that paying for Romney’s tax cuts would require large tax increases on families making between $100,000 and $200,000. So much for campaign rhetoric favoring the 1% over the 99%.
The Forbes article cites this one from the Council on Foreign Relations, which adds a chart to help aid in the analysis.
At the VP debate, candidate Paul Ryan said that his ticket would lower marginal tax rates by eliminating $1.1 trillion in loopholes and deductions for high-income taxpayers. But the chart above shows those loopholes and deductions, and a full 30% of that $1.1 trillion has been deemed by Romney to be untouchable. So, they only account for $770 billion of their promised $1.1 trillion.
Mitt Romney can lurch to the center all he wants, but he doesn’t want to change the system to benefit the middle class and the working poor – he’s done quite well under the status quo and has no incentive to change a thing. Romney and his running mate can brazenly lie and make promises that don’t mathematically add up, and seldom does it meet with much pushback because seriously, most people – most journalists – aren’t economists.