Moody’s Chief Economist On Romney’s Tax Plan: ‘The Arithmetic Doesn’t Work’

[TomCADem]

Source: Think Progress

The fact that Mitt Romney’s tax plan is mathematically impossible was reinforced again on Friday, when Mark Zandi, a former John McCain campaign adviser and Chief Economist at Moody’s Economy, admitted as much.

Speaking on CNN’s “Starting Point,” Zandi acknowledged a study by the Tax Policy Center that shows Romney’s plan to lower taxes by 20 percent across the board, while making up those losses in government revenue by closing loopholes on the wealthy, doesn’t add up. Zandi even went so far as to say that “the arithmetic doesn’t work as it is right now”:

ZANDI: Yeah, I think the Tax Policy Center study is the definitive study. They’re non-partisan, they’re very good. They say given the numbers that they’ve been provided by the Romney campaign, no, it will not add up. Now, the Romney campaign could adjust their plan. They could say okay I’m not going to lower tax rates as much as I’m saying right now and they could make the arithmetic work. But under the current plan, with the current numbers, no it doesn’t. I’ll say one other thing, though. I think it is important that we do focus on the so-called tax expenditures in the tax code. Those are the deductions, and credits, and loopholes in the code. We need to reduce those, because if we do we’re going to make the tax system fairer, easier to understand and ultimately lead to stronger growth. So that’s the right place to focus. But, no, the arithmetic doesn’t work as it is right now.

Closing all the loopholes and ending all of the deductions currently given to the wealthy does not make up for the losses of giving everyone in the country, particularly the wealthy, another tax break. The only way Romney’s plan will not add to the deficit is if middle class families pay over $2,000 more in taxes annually.

Read more: http://thinkprogress.org/economy/2012/10/12/1004921/zandi-romney-tax-plan/

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Somehow, we need to get through the corporate media and Republican ad powered obsession with the Romney bounce, and get the media to hold Romney and Ryan accountable. What is behind their $6 trillion in secret sauce that they will use to pay for their 20% tax rate cut?

If Romney can't even keep his position straight on abortion, how can Americans trust him on how he is going to pay for $6 trillion in tax cuts? Can they trust him when he assures them that the rich will not primarily benefit?

[starroute]

1. Something even more disquieting occurred to me

Last edited Sat Oct 13, 2012, 12:29 PM - Edit history (1)

At the debate, Ryan began invoking voodoo economics -- the idea that the tax cuts will pay for themselves by stimulating economic growth -- which provoked Biden's "So now you're Jack Kennedy" response.

But what struck me this morning is that there inevitably will be growth as the nation recovers from the great recession -- which suggests that the Romney/Ryan team is factoring that in and that their real objective is to give it away preemptively, just as Bush gave away the Clinton surplus with his two massive tax cuts.

But there's even more to this than looking for ways to justify new tax cuts for the rich. It's ultimately all about the Norquistian goal of drowning government in the bathtub.

Right now, we're running trillion dollar deficits -- partly because of the Bush tax cuts and two wars and partly because of the recession reducing revenues. Under current policies, a second Obama term would see those deficits come way down. But Romney/Ryan are determined not to let that happen. So their agenda consists of maintaining and increasing the Bush tax cuts, ramping up military spending to cost more than the savings from ending the wars, and making sure that despite economic recovery the government's revenues remain at current depressed levels.

At which point, they will claim there is no alternative but to cut spending -- and will start slashing everything except the military by 40% or more.

Not only is their agenda, but it's an agenda that requires them to win the presidency now, because by 2016 there will be a new economic status quo and the nation will already be on a sounder financial footing.

So don't believe anyone who says the GOP has written off 2012 and is waiting for 2016. Some of the party power brokers may have -- but the people playing the Norquistian games have not. They know that right now is their last chance to destroy government as we know it.

[evilhime]

3. they have to win

in 2012 or the party will implode and require a total reorg back toward the center, or getting elected again will be many years off. The GOP has spent 50 years working to get to the point where they could consistently have power and they are bloiwing it now, unless they succeed with the huge ad buys that are currently happening. The say way Romney won the nomination, rich boy is buying the election, if we let him.

And speaking of which where are those tax returns? How come we cannot sustain our own "birther" movement and keep demanding them because I am willing to bet he has more illegal and shady things revealed in there than Iran has fissile material!

[DhhD]

5. New protection for a new needed surplus for Social Security needs to be brought to the forefront by

We the People and the new Congress.

In 1983 the Greenspan Commission lead to creating a surplus in the Social Security Trust Fund that could be loaned out. Ryan even mentioned the SS surplus being gone during the debate.

Reagan set up a way to stimulate surplus. Joe Biden said that the fund could be increased again.

Romney wants to privatize a We the People insurance Trust Fund, a fund that is NOT part of the National Budget. SS is a Trust Fund not an Entitlement. If you are poor and in need of food, you are ENTITLED to federal food stamps. Food stamps is a REAL entitlement. Again, an Insurance Trust Fund is NOT an entitlement.

[Dman292]

2. If Mitt says

Lower the tax rates and close the loopholes doesn't that mean the wealthy are not paying their fair share. Maybe we should close the loopholes 1st then talk about cutting taxes

[DhhD]

8. Mitt will never close the loop holes on the Oil and Gas Industry or the tax loop holes that help

make the rich, richer. Congress could make those getting loop holes and subsidies REAPPLY.

Tax codes need to be changed for the wealthy as now they pay below the rate of low income earners.

In the VP Debate, Joe Biden said that we needed to level the playing field.

[roseBudd]

4. Go forth and spread this on Facebook DUers, leave the bubble...

DU is a bubble. We have the power via social media to be the media

[Esse Quam Videri]

6. Just did post to FB

Wasn't too snarky either. Just that I was hoping that Romney - yes even used the proper spelling of his name, would explain his plan at next Tuesday's debate.

[joanbarnes]

7. We've been here before (its how we got here), voodoo economics anyone?

[toby jo]

9. OK, I figured out the math the first time I heard this - in the 80's from Reagan.

Math hasn't changed. It still doesn't work.

[lovuian]

10. It doesn't work Voodo economics Creative book keeping and

Supply side economics

are Republican lies ....just like Derivatives

are lies

[truthisfreedom]

11. Run the numbers, Ryan. Do the math, Mitt.

Stop lying to us.

[Betsy Ross]

12. The English doesn't add up either.

Do they mean lower the tax rates by 20%? Lower the amount of taxes paid by Americans by 20%? Their speech doesn't add up!

[woodsprite]

13. Just posted to FB so my Fox news imbibing FB 'friends' will see it. n/t