39 Shares By Bubba Atkinson 1 year ago
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Let’s get this straight – Obama’s claims that Romney’s tax cuts will cost Americans $5 trillion is simply not correct, and it is misleading. Here’s why:
To start off, the Tax Policy Center that analyzed Romney’s tax proposal, “including his plan to reduce federal income tax rates by 20 percent, in addition to eliminating the estate tax and other tax reductions,” found that “the lost revenues would total $480 billion by 2015.” Now round that $480 billion up to $500 billion, and expand that over a decade; now you have $5 trillion in lost revenue, according to the Obama campaign. But that isn’t the whole story.
Romney’s plan, fact checked and checked and fact checked again and again, includes an offsetting of lost revenue by getting rid of deductions and closing loopholes. As CBS News points out, “Romney himself has said that his tax cuts will be revenue-neutral,” as in he would not cut taxes unless he could guarantee that the loss in revenue from the cut would be made up by a closed loophole, a removed tax shelter, or a tax deduction.
The argument the Obama campaign is clinging to is that Romney hasn’t specified exactly what they will do to make up the lost revenue because they would prefer for that discussion to be taken in the shape of a bi-partisan Congressional discussion.
Many don’t like that this leaves a question mark out there, but what else would you suggest doing if you were in that scenario, partisan reform? We’ve seen that not work time and time again.