THE FACTS ON MITT
ROMNEY’S PRO-GROWTH TAX REFORM PLAN
“The main conclusion of my study is that under plausible assumptions, a proposal along the lines suggested by Governor Romney can both be revenue neutral and keep the net tax burden on taxpayers with incomes above $200,000 about the same.” –Harvey Rosen, Ph.D; John L. Weinberg Professor of Economics and Business Policy, Princeton University
Experts Agree – Mitt Romney’s Pro-Growth Tax Reform Plan Broadens The Base And Will Not Raise Taxes On The Middle Class:
American Enterprise Institute’s Alex Brill: Upon Closer Look, The Allegation That Mitt Romney’s Plan Will Raise Taxes On The Middle Class “Falls Apart.” “Adding to a growing chorus of objective analyses on the Romney Tax Plan, Alex Brill – Research Fellow at the American Enterprise Institute and former policy director and chief economist of the House Ways and Means Committee – finds that Mitt Romney’s plan for fundamental tax reform will not increase taxes on the middle class. While the Obama campaign continues to hide behind a discredited Tax Policy Center (TPC) report that is based upon false and misguided assumptions, Brill concludes that, upon a closer look, ‘the TPC report falls apart.’” (AEI, 10/1/12)
Princeton Economist Harvey Rosen: “An Increase In The Tax Burden On Lower And Middle Income Individuals Is Not Required In Order To Make The Overall Plan Revenue Neutral.” “The main conclusion of my study is that under plausible assumptions, a proposal along the lines suggested by Governor Romney can both be revenue neutral and keep the net tax burden on taxpayers with incomes above $200,000 about the same. That is, an increase in the tax burden on lower and middle income individuals is not required in order to make the overall plan revenue neutral.” (The Weekly Standard, 10/8/12)
Heritage Foundation’s Curtis Dubay: Romney’s Pro-Growth Plan Reforms The Tax Code In A Revenue-Neutral Manner And Will Not Raise Taxes On Middle-Income And Low-Income Taxpayers. “Making these changes in the authors’ assumptions would undo their headline-grabbing conclusion that Governor Romney’s tax reform plan would cut taxes on the rich and raise taxes on middle-income and low-income taxpayers. Instead, with these changes in place, their analysis would show that the Romney plan makes growth-promoting policy changes in a revenue-neutral manner and does not raise taxes on middle-income and low-income taxpayers … [S]trong evidence indicates that the Romney plan would have a robust beneficial effect on economic growth.” (The Heritage Foundation, 9/25/12)
Harvard University’s Martin Feldstein: Base Broadening Can Produce Enough Revenue To Offset Rate Cuts. “Since broadening the tax base would produce enough revenue to pay for cutting everyone’s tax rates, it is clear that the proposed Romney cuts wouldn’t require any middle-class tax increase, nor would they produce a net windfall for high-income taxpayers. The Tax Policy Center and others are wrong to claim otherwise.” (The Wall Street Journal, 8/28/12)
- · Feldstein: The Romney Plan Would Not Require A Middle-Class Tax Increase Or A Larger Budget Deficit. “While I still believe the assumptions that I used in my analysis, I can modify them as suggested by the critics and still support my original conclusion by broadening the tax base in ways suggested but not developed in my WSJ piece.” (Martin Feldstein, A Reply From Martin Feldstein, Greg Mankiw’s Blog, 9/2/12)
Tax Foundation’s Stephen Entin And William McBride: The Romney Plan Will Result In At Least A 7% Gain In After-Tax Income Across Every Income Group. “Our results indicate that by lowering tax rates on investment and labor, the Romney tax plan would grow the economy by 7.4 percent, the capital stock by almost 19 percent, wages by almost 5 percent, and hours worked by 3 percent. The benefits would be widely enjoyed, as every income group would experience at least a 7 percent increase in after-tax income. It would benefit the federal budget as well, in that fully 60 percent of the static revenue loss from Romney’s plan would be recovered from taxing a larger economy.” (Tax Foundation, 10/3/12)
AEI’s Matt Jensen: Repealing The Exclusion Of Interest On Tax Exempt Bonds And Interest On Life Insurance Savings “Could Make The Impossible Suddenly Possible.” “[A] couple of items that TPC assumes are off the table are the exclusion of interest on tax exempt bonds and the exclusion of interest on life insurance savings. While Governor Romney has professed a desire to keep rates on savings and investment low, maintaining these exclusions is not necessarily what he meant. In fact, both of these exclusions largely benefit the wealthy, and, according to the Treasury Department, added together their repeal … could make the impossible suddenly possible.” (American Enterprise Institute, 8/9/12)
