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URL:  http://boards.fool.com/romneys-plan-is-to-basically-simplify-the-tax-30311614.aspx

Subject:  Re: Shocker: Zero the Actual Liar Date:  10/10/2012  3:54 PM
Author:  xLife Number:  107221 of 143916

Romney's plan is to basically simplify the tax code by getting rid of some deductions. Your tax rate will actually be pretty close to what the IRS schedule says you should pay (depending on what deductions aren't cut, of course.)

First, thanks for the explanation. Second, I'm a huge fan of simplifying the tax code.

But that's a very big "depending on..." And that's why it's impossible to evaluate the effect of the plan without the loopholes details. Romney says he's not going to touch the two biggest deductions, home mortgage interest and charitable gifts, so where is the money going to come from to make it revenue neutral?

The fact of the matter is that when you change the tax code in a revenue neutral way, there are winners and losers. Who are the winners and losers in Romney's plan? Based on what he's said (insofar as he's consistent) it has to be the middle class. I don't see any way around it.


And those rates will be lower, which should stimulate the economy and lead to higher government revenues (which happens to work EVERY TIME it's tried).

Every time? Which time? Revenues did not increase in 2001, 2002 or 2003 after tax cuts.


Get rid of some of the crap government pays for but shouldn't (PBS was an example, not a complete list of course) and suddenly we can do an odd thing, pay down some of our horrendous debt.

PBS is a bad exam