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Author: wolsey1 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 136597  
Subject: Re: I'm confused. Date: 10/6/2012 11:17 AM
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Romney's plan it to cut rates 20% across the board, but keep revenue the same by eliminating lots of deductions. He doesn't specify which deductions. So although supposedly "revenue neutral" some people would see tax cuts and others tax increases. We can only guess who will get which.

Washington Post says there's $1 trillion yearly in total tax breaks.

Tax Policy Center says there's $480 billion yearly in Romney's 20% rate reduction (x 10 years is the $5 trillion number Obama mentions).

So maybe it's possible for the numbers to work out, meaning rate reduction could be offset by elimination of some deductions.

But what if much of those deductions favor middle and lower income households, and thus what if Congress declined to pass such legislation?

Assuming there's not enough base-broadening, Kevin Hassett insists Romney won't pursue the 20% rate reduction.

Looks like a fair likelihood that in a Romney administration there wouldn't be much change to the tax code, and he'd continue with debt-expanding yearly deficits that plagued the last Republican administration.
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