Responding to criticism that his tax cut plan will not lower taxes for the wealthy and create a larger budget deficit Mitt Romney said that no economist could say his plan didn’t work because he (Romney) says it does work.
None of these would cost the Treasury a dime, he insisted, because he would reduce deductions and loopholes. But, as always, he refused to enumerate a single deduction he would erase. “What I’ve said is I won’t put in place a tax cut that adds to the deficit,” he said. “No economist can say Mitt Romney’s tax plan adds $5 trillion if I say I will not add to the deficit with my tax plan.”
Of course, there have been hundred of economists who can and have said that. And now the staff of the Joint Tax Committee of the Senate has reached the same conclusion.
The report assumes that Congress allows today's reduced rates to rise in January and concludes that the elimination of certain provisions (the AMT; limitations on itemized deductions and personal exemptions for certain taxpayers; itemized deductions; preferential rates for capital gains and dividends; interest exclusion on state and local bonds) would fund only a 4% decrease in all ordinary income tax rates (from 15% to 14.4%; 28% to 26.9%; 31% to 29.8%; 36% to 34.6%; and 39.6% to 38.0%). The report did not consider the exclusion for employer-provided health care; earned income tax credit; child tax credit; and retirement and pension provisions.
Wow, complete and total evidence that Mr. Romney’s numbers do not add up. And Mr. Romney wants rates cut 20% across the board from today’s rates, not from the rates that will be in effect in 2013.
Anybody see the headlines bringing this information to the American people? Anybody?