From that bastion of liberal thinking, Forbes
If Romney Cuts Taxes For The Rich By 20%, He Will Have To Raise Taxes For The Middle Class By $1 Trillion
A screenshot from romneytaxplan.com
A highly amusing website put out by the Democratic Party is an easy-to-access critique of the Romney tax plan. Ignore stump speeches or long-winded debates. Just get control of your cursor and chase the access button as it moves and darts about your screen– and PRESTO- up pops the numbers that are easy to follow.
First the $5 trillion in tax cuts which reduces the income tax on the wealthy by 20%($2.5 trillion), eliminates the Alternative Minimum Tax($700 billion), repeals the high-income payroll tax($300 billion) and hands out a juicy $1 trillion tax cut for corporations. They’re like people you know. Nice clean math. Nice big figures with a lot of zeroes.
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%. (In the interest of fairness I want to report that some readers of this blog have pointed out that Harvard economist Martin Feldstein wrote a column in the Wall Street Journal on August 28,2012, underscoring that IRS data from 2009 shows Romney’s plan “would not require a large tax increase on the middle class to avoid raising the deficit.”(See comments below)
You don’t believe this? Then, please consult “There’s a $1 Trillion Hole in Romney’s Budget Math,” by Benn Steil and Dinah Walker of the Council on Foreign Relations.