Rinata
Gold Member
- Oct 5, 2009
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Romney has claimed that he will pay for his tax cuts by closing a variety of loopholes and deductions. The factual problem? Romney hasn't named a single loophole he's willing to close; worse, there's no way to offset $5 trillion in tax cuts even if you get rid of the entire universe of deductions for the wealthy that Romney has not put off the table (like the carried interest loophole or the 15 percent capital gains rate.)
The flaw in your thinking is highlighted in bold. You cannot state with certainty that reducing tax RATES will result in reduced revenue. Often, the exact opposite occurs.
Romney need not specify which loopholes will be cut, if for no other reason than Congress gets to have input on the subject. But more importantly, you cannot state with certainty which direction tax revenues will go following a change in the tax rates or loopholes. In other words, he may not have to "pay for his tax cuts" at all because revenue may actual increase following a tax cut.
Romney believes cutting tax rates and eliminating loopholes will boost the economy and therefore will result in more tax revenue, despite the lower rates. While he has plenty of historical evidence to support that position (as well as Dr Laffer), you are free to disagree. However, that does NOT mean Romney lied.
What I highlighted is the opinion of The Tax Policy Center and it makes sense to me. They have also said that his math doesn't add up. When you say that Congress gets to have input, so what?? They will probably be completely deadlocked, as usual!!
Romney must know all this, doesn't he?? So he is being less than honest. I think he knows it doesn't add up.