Liberals Dispute Romney Campaign on 2006 Tax Study

[TomCADem]

Source: Roll Call

The Romney campaign on Thursday highlighted a blog post by the Tax Foundation that pointed to the 2006 study of a “Romney-style” tax plan by the Joint Commission on Taxation as evidence that tax reform would boost economic growth and employment.

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The tax plan in the Joint Committee on Taxation report bears many similarities to Romney’s plan. It would cut tax rates by 23 percent across the board, with a top rate of 26.8 percent — slightly more aggressive than the 20 percent across-the-board cut and 28 percent top rate proposed by Romney. And it would maintain tax breaks for capital gains and dividends, as Romney has proposed. But the JCT plan would not eliminate the capital gains and dividend breaks entirely for people making less than $200,000, as Romney has also posited.

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Indeed, the study found that in order to pay for the rate reductions, nearly every other tax break in the code would have to be repealed, including the child tax credit, the income exclusion for employer-provided health and life insurance benefits, and deductions for mortgage interest, charity and state and local taxes. That would result in millions of taxpayers paying higher effective tax rates.

But the study also said the overall reform would modestly increase employment and growth over a decade, albeit by less than the Romney campaign has been touting for its plan.


Read more: http://www.rollcall.com/news/liberals_dispute_romney_campaign_on_2006_tax_study-218346-1.html

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Well, here is one outlet that is picking up on Romney's reliance on a 2006 Congressional Study that would dramatically raise taxes on the middle class in support of his tax plan. Yet, the corporate media is generally ignoring this admission by the Romney campaign.

[SoapBox]

1. "the corporate media is generally ignoring this admission by the Romney campaign"

and it just STEAMS me!

[LeftofObama]

2. How about this for a theory...

Everyone should just ignore anything Robme has to say about taxes until he shows us his returns!

[AdHocSolver]

3. This plan is trickle down economics and would destroy the economy.

Taking money away from the middle class, who would spend it, and giving it the already wealthy, who would hoard it, is counter to economic reality.

All economies are demand driven. This means that economic activity increases when people have money to spend and want to spend it. When people spend money, businesses expand by hiring more employees. The middle class, as a group, are the biggest spenders and drive any economy.

The wealthy people of today, by hiding their wealth in offshore bank accounts, are money hoarders. They are withdrawing that money from circulation in the economy. Less money in the hands of people who would spend it reduces demand for goods and services. In response, businesses will lay off workers, NOT hire them.

Laying off workers shrinks an economy. Economic activity increases when money is spent to purchase goods and services, and shrinks when money is not spent.

The tax plan from the Joint Commission on Taxation, which would effectively take money from the middle class, who would spend it, and give it to the wealthy, who effectively hoard it, would reduce demand in the economy and result in a loss of jobs, not even a modest increase, as they claim.

To claim that the JCT plan would even modestly increase employment is totally illogical and utter economic nonsense.

[OKNancy]

4. You can bet the President is studying up on this

in case Romney brings it up. I sure hope he is anyway.