When less really is moreAugust 3, 2012 @ 7:57 am (Updated: 9:00 am - 8/3/12 )
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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