The Urban-Brookings Tax Policy Center recently reported that Mitt Romney’s tax plan will raise taxes on 95% of America. But Romney has promised a 20% tax cut to everyone. Whose math adds up?
“It’s sort of like an Olympic boxing match today the Romney camp threw a punch fast and early, pointing out that one of the authors was a former aide to president Obama,” reports CNN’s Erin Burnett.
However, one of the other authors on the report was a former aide to George H.W. Bush, and the third author worked for both Bush and Obama.
The report says that if Mitt Romney’s plan becomes a reality, tax revenue because he’s going to be cutting marginal tax rates will drop by $360 billion in the first year alone. That means someone must pay $360 billion more if it’s “revenue neutral,” which is something Romney promised in February.
Romney’s economic advisor Columbia business school’s Dean Glenn Hubbard tells OutFront that the money will come from an economy that grows more quickly than it would under Barack Obama- specifically 4% a year under Mitt Romney, something it hasn’t done 2000. The tax policy center says it is not possible.
New York University’s Professor of Taxation Daniel Shaviro said, “There really is no conceivable way that GDP growth can make a significant short-term difference to the study’s finding.”
The bottom line? More details from Romney are a must.
Burnett also discussed Romney's tax plan with Stephen Moore of Wall St. Journal Editorial Board and Matt Bennett of the Third Way:
Study: Romney tax plan would shift burden toward poor
Mitt Romney's tax plan would provide large tax cuts to the very wealthy, while increasing the tax burden on the lower and middle classes, according to a study released Wednesday.
The report - produced by researchers at the Urban-Brookings Tax Policy Center - illustrates just how difficult it would be to recoup government revenue lost under Romney's plan.
The presumptive Republican presidential nominee's tax plan calls for 20% cuts to today's Bush-era income tax rates. He would also eliminate the Alternative Minimum Tax.
Those tax cuts would lead to a sharp decline in government revenue. Yet Romney insists he will make up the difference in-part by limiting deductions, exemptions and credits currently available to top-level income earners.