TCTI: Too Crazy Too Ignore
 Dave Ross

When less really is more

August 3, 2012 @ 7:57 am (Updated: 9:00 am - 8/3/12 )

cedargrove
Mitt Romney has a very appealing campaign promise: Cut tax rates 20 percent and grow jobs, without increasing the deficit. (AP Photo)

Mitt Romney has a very appealing campaign promise: Cut tax rates 20 percent and grow jobs without increasing the deficit.

But he hasn't laid out a specific budget. That's not unusual; why give your opponent an easy target?

But the numbers are still important, and if Romney isn't going release them, OTHERS will, in this case the Tax Policy Center, an organization Romney himself has quoted.

It took Romney's promises and used economic formulas developed by one of Romney's own tax advisers.

Here's what it found: If Romney reduces tax rates by 20 percent, and if those cuts unleash the glorious eruption of job creation and growth that he predicts and we all would welcome overall tax revenue still drops during his first term by $360 billion.

Since he has also pledged not to increase the deficit, the Tax Policy Center calculated what tax breaks you'd have to eliminate. They were forced to eliminate deductions for mortgage interest, health care, medical expenses, and child care, among others.

And every scenario ended the same way. Households making over $200,000 a year would pay less tax, and those making under $200,000 would pay more.

Millionaires in particular would average $87,000 less in taxes; while the middle class would pay an average of $500 more.

Now $500 is not a horrible increase, but what the study means is that if Romney delivers on his promise to cut tax rates 20 percent, in terms of your actual tax bill, most households pay more.

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Comments (110)


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  • It's me! Ha ha! wrote...
    No specific plan yet Dave?
    August 3, 2012 7:04 am
    First of all, what is Obama's plan?

    Second if when Romney lays out his plan, the left wing will shred it and Obama will attempt to infuse it into his lie Campaign.

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  • It's me! Ha ha! wrote...
    Left wing Parrots;
    August 3, 2012 7:08 am
    Do you remember, as we Americans do, when your Dear Leader Obama came out and promised, PROMISED that if we passed his Jobs stimulus plan that the unemployment rate would NEVER exceed 8 percent? Three stimulus later and what is that unemployment rate at Parrots? Over 8 percent. more like 13 percent and higher!

    We will REMEMBER IN NOVEMBER!

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  • The Chuckster wrote...
    Obama said that if the stimulus bill was passed that unemployment in the summer of 2012
    August 3, 2012 8:09 am
    Would be 5.7%. It's 8.2. Obama has nothing to run on. Obama said that the Bush deficits were unpatriotic and then blew past them. Left wing parrots will either blame someone else for the messiah failures or call you a racist of you criticize him. The rag Newsweek whipped out a 20 year old "wimp" slam they used on Bush. I thought Romney was a bully? They called him a felon. They made fun of his MS stricken wife. They insinuated animal abuse. They wailed about his tax rate when he is a 65 year old who is retired.( you want to raise the dividend tax on retired people??????) Now this. It's tired. The Dave Ross slimy media types are emotionally invested in Obama and will stoop to any level to besmirch Romney. They should be ashamed of themselves. Journalism and the media are deceased.
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  • ron prevost wrote...
    DAVE ? - Uh, Dave? ...... Full disclosure, please.
    August 3, 2012 8:11 am
    Used to be said there were lies, darnn lies and statistics. .. Now, I guess we've got to add the Tax Policy Center. And whatever else R & B use to make their points.

    The Tax Policy Center - official as it sounds - is a joint venture of the Brookings Institution (claiming non-partisan, but mostly democrat) and the Urban Institute, originally founded by LBJ to endorse his Great Society back in the 60s. ------- Just, then, WHAT WOULD you EXPECT this 'Tax Policy Center' to say about the Romney proposal?

    But what's really self serving is the 'scenario' this left wing group says is 'necessary' for the Romney plan to work. You can talk about dropping deductions for home mortgages and catastrophic medical expenses all you want but - ain't gonna happen - not even it we ever do go to a flat rate.

    This is a whole lot like the typical progressive response to cutting budges anywhere, any time. Cut all the good stuff first.

    .

    BTW - did Luke actually write this commentary? It lacks the little turns and humor that Dave usually includes. Either that, of Dave has gone 100% to the Dark Side,

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  • Lonestar wrote...
    You get the tax rate by dividing two meaningless numbers
    August 3, 2012 8:13 am
    The tax part doesn't include indirect taxes paid on one's behalf by corporations and employers. Income excludes items like employer-paid health insurance (a tax break for the rich that Obama loves), deductions, exclusions, etc. Unless we blow up the tax code and start over, any discussion tax rates is meaningless.
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  • Chuck Gould wrote...
    Romney needs to shift into damage control mode. Very, very quickly.
    August 3, 2012 8:15 am
    The portrait of Mitt Romney that is beginning to emerge is not very endearing. His $1-million horse is competing in the Olympics. On the few tax returns he has released, he has paid tax on a mega-million-dollar income at a rate that's about half what the average middle class taxpayer must cough up. He is answering specific charges that in other years he paid "no taxes at all" by very specifically refusing to release any evidence that would contradict that claim. At least when candidate Obama was faced with calls for his birth certificate he brought something forward (even if the critics then, of course, said "that can't be the real birth certificate!").

    At this point, I'm not personally convinced that it is true (or not true) but his opponents are effectively projecting an image of a guy whose main interest is in tilting the playing field to additionally favor folks who make 8-figure incomes- left of the decimal point. An additional $87,000 tax cut for people earning $1-million or more per year, and a $500 increase for the guy making $20 or $30 an hour?

    I know, I know, I just don't get it. All the Mitt Romneys will take that extra $87,000 and use it to start businesses and create jobs. Yes they will. Lots of new jobs in India, China, or wherever the cheap labor du jour is located. Lots of new jobs for bankers in the Bahamas.

    I could be more objective. There has to be at least one new job that Romney's $87,00 tax savings will establish. No doubt he would enjoy hiring somebody to muck out his stables or groom his $1-million horses. Great job! Long hours, hard work, minimum wage, and no benefits. Never let it be said that cutting taxes for the uber-rich doesn't create jobs.

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  • logical open mind wrote...
    seattle latte libs-stop being jealous that someone has more money than you.
    August 3, 2012 9:20 am
    You dont need to rich to have a great life. quit crying about the rich, hating the rich, thinking we could solve all problems if we simply ATE THE RICH. you are a bunch of jealous school girls.
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  • Cbrew wrote...
    Why is your name "logical Open Mind"
    August 3, 2012 11:51 am
    your mind is obviously not open. Also your statements show how foolish you really are. People aren't asking the rich to give up their lifestyle and give up all their money and we're not jealous. People are asking the Wealthy to pay their fair share of taxes instead of paying a lower percentage than the middle class and poor. That's what people are angry about you dunce.
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  • logical open mind wrote...
    Cbew-what is their fair share for someone making $500K a year
    August 3, 2012 3:10 pm
    before property taxes, before anything but federal income taxes, what % should this example pay? Also, the difference bettween what you say and what the $500K pays now will do exactly, in your opinion what to the yearly debt and lower the 16T by how much. Are you aware that states have found that they do not get the projected tax revenue they estimate? The higher income people get good accountant to move their money to more tax protected investments. Do yearly think it is a % increase is excactly the revenue increase projected? If so how do explain Clinton lowering capital gains tax and tax revenue increasing?
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  • maplefish wrote...
    Harry Ried is a CHILD MOLESTER
    August 3, 2012 10:33 am
    But, I can't name my source....
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  • SeattleD wrote...
    Dumney needs to transfer wealth from the poor to his own bank account
    August 3, 2012 8:25 am
    Afterall, he's spending $70,000 a year just to have someone pet his wife's horse.
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  • Chuck Gould wrote...
    D, he pays $70,000 for somebody to pet his wife's horse?
    August 3, 2012 8:34 am
    Really? If so....

    In Romney's world, even the servants earn 40% more than the median American income.

    Maybe that explains his weird, alleged perspective? "How tough can it be to be poor or middle class in the United States? Aren't there a lot of opportunities for people to pet horses at $35 an hour?"

    Funnel more money to the rich. Let them buy more $1-million ponies. They can hire those of us who don't make $20-million per year to pet them. Sounds like a brilliant economic policy.

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  • logical open mind wrote...
    New lib solution-eat the rich, eat Romney's horse!!
    August 3, 2012 4:26 pm
    Keep class envy alive-it will set you free.
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  • sportsguru wrote...
    Let the truth be told
    August 3, 2012 8:40 am

    This wolf in sheeps clothing if being unveiled for what he truly is. The closer we get to November, the more of his mask will be removed and revealed about him.

    I am sure they will shake Mitty "etch a sketch" Romney up and he will try to change course at the last minute for damage control, bet on it.

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  • logical open mind wrote...
    I remember when Reagan was runnin the first time. The media and left went on and on about nuke war with Russia and how disasterous he would be.
    August 3, 2012 9:49 am
    Look what happened-Gorby said Reagen was the reason for some much Nuke dis-arming, he was the reason the Berlin wall came down. I would say quite confidently that the left was smoking dope.
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  • SeattleD wrote...
    Chuck, I admit it is not just petting
    August 3, 2012 8:40 am
    There is the brushing and the washing and the massages and the pleasuring...so the hired hand really earns the money.
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  • It's me! Ha ha! wrote...
    If the poor can't afford their rent, food, and health care now, how will they be able to pay any taxes.
    August 3, 2012 9:01 am
    These the 48 percent who DON'T pay taxes now and who we the American taxpayer is paying MORE in taxes through ObamaCare middle class tax increases! Take away their benefits and give that money back to it's owners us taxpayers!
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  • Chuck Gould wrote...
    HAHA, the 48% who "don't pay [income] taxes" include....
    August 3, 2012 9:22 am
    8% of the population that is looking for work.

    Now we're down to 40%, right?

    Deduct roughly 25% of Americans who are retired and living off pensions and social security. (You really want to "take away their benefits"? There's a winning plank in a political platform).

    Now we're down to about 15%, right?

    Factor in all the students working after school and on weekends but who have social security numbers and therefore are potentially tax payers.

    You are down to very, very, few working people who actually make some money and don't pay any income tax. There are rumors that the Republican candidate for President is among them. :-)

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  • fartforce1 wrote...
    Well Done Chuck!
    August 3, 2012 9:57 am
    Thanks
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  • maplefish wrote...
    SuperChuck
    August 3, 2012 10:37 am
    Those people get that money back (plus deduction & credit) in the form of REFUND every year. So, your argument is null. How on earth can you possibly defend Obama and ALL of his FAILURES???? $5TRILLION and NO JOBS and then his only idea is TAX the Rich??? Come ON!
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  • Chuck Gould wrote...
    Uh, Maplefish...please point out where I have "defended Obama and all his failures"
    August 3, 2012 12:06 pm
    Thanks.

    Asking the critics of any person to confine their remarks to the truth, or to clearly identify conjecture and opinion, is hardly "defending" that person.

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