Observers give first round to Romney

Thanks for visiting The Daily Sentinel

Subscribers and registered users, log in to continue reading for free*


Forgot your password?    

Register to read for free! Become a subscriber

* 7-day subscribers have unlimited access to online content.
Registered users may read 12 articles per month.

COMMENTS

Commenting is not available in this channel entry.

The Sentinel’s reporting of the AP’s fact-checking of yesterday’s presidential debate (“Factual missteps included health insurance, jobless”) omitted several falsehoods chronicled in the AP’s on-line version (“Fact Check:  Presidential debate missteps”).

One curious omission was the AP’s analysis of Romney’s campaign-touted tax plan.

Logically, the net effect of tax code changes is calculated by subtracting total revenue-increasing offsets from total revenue-decreasing tax cuts (i.e., arithmetic).

Romney’s published plan calls for 20% across-the-board cuts in tax rates – and thus a 20% reduction in federal income tax revenues ($5 trillion over ten years).

Romney would also extend the expiring Bush tax cuts for all brackets – costing another $1 trillion, and would increase defense spending by $2 trillion – a total of $8 trillion.

Romney claimed that his tax cuts would always be “revenue neutral”—because revenue reductions created by his plan would be filled by limiting as-yet-unspecified deductions for the “top 3%” (to be “negotiated” with Congress), thus admitting that there might be no tax cuts whatsoever – prompting President Obama to caustically retort “never mind”.
As President Obama stated – and as the widely-regarded non-partisan Tax Policy Center concluded—there is simply not enough revenue available from those deductions to close a $5 trillion gap, so either deficits would explode or the middle 50% of taxpayers (97% minus the bottom 47% who pay none) would average $2300 in annual tax increases.

Romney dismissed that inconvenient fact by disingenuously referencing “other studies”—produced by conservative “think tanks”—which close Romney’s (and Ryan’s) revenue shortfalls by arbitrarily assuming that their tax cuts (if any) would stimulate sufficiently robust economic growth to generate the necessary additional tax revenues.  Magic!

That is the core “shell game” of “Voodoo Economics” and, as the AP noted, “Congress doesn’t use those kinds of projections when it estimates the effect of tax legislation”.

                Bill Hugenberg



TOP JOBS
Search More Jobs





THE DAILY SENTINEL
734 S. Seventh St.
Grand Junction, CO 81501
970-242-5050
Editions
Subscribe to print edition
E-edition
Advertisers
Sign in to your account
Information

© 2014 Grand Junction Media, Inc.
By using this site you agree to the Visitor Agreement and the Privacy Policy