If you take what he said last night as canon — cut income taxes 20%, cap deductions at $20K. Result (avoiding any discussion of social or economic costs of deductions thus invalidated):
'Romney is $257 billion short, and the rest of his plan (eliminating the estate tax, eliminating investment taxes for middle-income earners, lowering the corporate tax rate) just makes things even worse. One way or another, Romney has a whole slug of revenue he needs to make up. '
Fair and balanced.
So, either …
(a) Deductions/credits must be capped much lower. Meaning people who rely more on deductions/credits more end up not seeing that "20% tax cut." I believe that impacts the middle class a lot more, as a proportion of income, than the 5%.
(b) Spending must be cut by hundreds of billions of dollars a year. Hmmmm … wonder where Mitt will suggest that come from.
(c) The deficit will climb. Well, we know that's the greatest of all possible evils.
So my bet is on (a) and (b).
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Here It Is, the World's Simplest Tax Analysis
Earlier today I promised you that an analysis of Mitt Romney's tax plan from last night would be a lot easier than an analysis of his earlier plan. As you recall, his previous proposal was to cut rate…
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Well written! I'm certain Mitt would be happy with d) All of the above! So he can cut more programs, lower tax rates even more (slanted towards the mythical "job creators") and increase the burden on the middle class (to help keep those workers in line).