Mr. Romney Needs a Working Calculator
Published: October 15, 2012
To the annoyance of the Romney campaign, members of Washington’s reality-based community have a habit of popping up to point out the many deceptions in the campaign’s blue-sky promises of low taxes and instant growth. The latest is the Joint Committee on Taxation, an obscure but well-respected Congressional panel — currently evenly divided between the parties — that helps lawmakers calculate the effect of their tax plans.
Last month, the committee asked its staff what would happen if Congress repealed the biggest tax deductions and loopholes and used the new revenue to lower tax rates. The staff started adding it up: end all itemized deductions, tax capital gains and dividends as ordinary income, and tax the interest on state and local bonds, along with several other revenue-raisers.
Mitt Romney says he can lower tax rates by 20 percent and pay for it by ending deductions. The joint committee’s math makes it clear that that is impossible.
The analysis doesn’t include every possible tax expenditure, leaving out, for example, the tax break employers get for providing health insurance. But because Mr. Romney refuses to raise capital gains taxes and wants to end the estate tax, it is hard to see how he could do much better than 4 percent.
This is why Mr. Romney has refused to say which deductions he would eliminate, just as Representative Paul Ryan refused when asked a direct question in last week’s debate. Specify a deduction, and some pest with a calculator will point out that it doesn’t add up.
Even Fox News isn’t buying it. Ed Gillespie, a senior adviser to the Romney campaign,said on Fox News Sunday that Mr. Romney would work out those details later with Congress. As the program’s moderator, Chris Wallace, pointed out, that’s like offering voters the candy of a 20 percent tax cut without mentioning the spinach they will have to eat.
The Romney campaign claims it has six studies proving it can be done, but, on examination, none of the studies actually make that point, or counterbalance the nonpartisan analyses that use real math. Two of the studies, for example, were done by the same Republican economist, Martin Feldstein, an adviser to the Romney campaign, who said it would require ending all deductions for everyone making $100,000 or more. But Mr. Romney has explicitly said he would not do that.
It is increasingly clear that the Romney tax “plan” is not really a plan at all but is instead simply a rhapsody based on old Republican themes that something can be had for nothing. For middle-class taxpayers without the benefit of expensive accountants, the bill always comes due a few years later.
- Fox News Turns on Romney and Criticizes His Impossible Tax Cut Math (politicususa.com)
- “Sentimental Storytelling”: Beware Of Mitt Romney’s “Softer Side” (mbcalyn.com)
- Fox News vigorously challenges Romney’s tax cut lies (americablog.com)
- Even Fox Is Calling Out Romney for Dishonesty (alternet.org)
- Even Fox News doesn’t buy Romney’s “six studies” on tax policy (salon.com)
- Romney campaign admits ‘independent’ analysis of tax plan math came from ‘right-leaning think-tank’ (dailykos.com)
- CONN CARROLL: Romney’s Best Ad Yet. “Mitt Romney’s campaign wasted little time in capitalizing o… (pjmedia.com)
- A Study of Mitt Romney’s Six Studies Validating His Tax Plan (news.firedoglake.com)
- Gillespie: Romney tax plan specifics will come after election (thehill.com)
- Romney’s Unraveling Claim That Six Studies Validate His Tax Plan (tpmdc.talkingpointsmemo.com)