As always, the devil is in the details.
That’s probably why Republican presidential candidate Mitt Romney is so tight lipped when it comes to releasing the details of his tax plan. He’s good at rattling off the talking points: lowering taxes on middle- and low-income families; will keep high-income earners at the same rate; and will not add to the country’s deficit by capping the value of tax breaks available to any individual taxpayer.
And now for the devil.
While he flatly denied when confronted by President Obama in the first presidential debate that his plan will cause the country to lose $5 trillion over the next 10 years once tax rates are reduced by his proposed 20 percent, the truth is that the Romney tax plan will create a $5 trillion revenue hole that won’t even come close to being offset by his plan to cap deductions.
And in fact, according economist William Gale of the Brookings Institution in Washington and a senior White House economist under President Bush, the Romney tax plan doesn’t even “come close” to paying for the $5 trillion. He co-authored a study of the Romney tax plan for Tax Police Center in Washington, a non-partisan organization.
Gale’s analysis, along with possible tax scenarios based on what is known about Romney’s tax plan, is explained in an article for Bloomberg showing how middle-income families might be affected. It also presents a view supportive of Romney’s plan. But again, both views are based on the limited details Romney has released.