Mitt Romney finally released his tax plan. To nobody’s surprise, it consists largely of cutting taxes by cutting marginal tax rates by 20% across the board. But Romney also promises to reduce the deficit.
In order to simultaneously cut taxes and reduce the deficit, Romney is going to have to cut spending. A lot of spending. But Romney refuses to identify any spending he would cut, and he has even promised to increase military spending and to hold benefits steady for the current generation of seniors. He also promised to reform the tax code, but refuses to identify any deductions or loopholes he would eliminate.
But that didn’t stop the nonpartisan Tax Policy Center (directed by a member of George W. Bush’s council of economic advisors) from trying to evaluate his tax plan. Indeed, they gave his plan every possible benefit of the doubt, assuming wildly unrealistic growth effects from tax cuts (the same bill of goods that Reagan sold the country, which didn’t work then either).
The bottom line? Romney’s plan is “mathematically impossible“.
This isn’t a plan, it’s a fairy tale.