Closing Loopholes Would Allow Only a 4% Tax Rate Reduction
Closing Loopholes Would Allow Only a 4% Tax Rate Reduction
One of Mitt Romney's main campaign promises is that he would reduce tax rates by 20% and make up the lost revenue by eliminating deductions. Now the Joint Committee on Taxation, the official, nonpartisan scorekeeper on tax policy has issued a report on the subject. If Romney were to eliminate deductions for mortgage interest, charitable contributions, and state and local taxes, the amount of revenue recovered from them would allow the rates to be reduced only 4%, not 20%, from the rates that will be in effect next year if Congress does nothing. This would mean a top rate of 38% (vs. 35% now and 39.6% under Bill Clinton).
Democrats immediately seized on the report saying a 20% rate reduction would increase the deficit, something Romney opposes. Republicans attacked the report, saying there are other deductions that could be eliminated, such as employer-provided health insurance. Removing all these deductions, however is likely to generate massive opposition. It is doubtful that Congress could muster the will to pull it off.
http://www.electoral-vote.com/evp2012/Pres/Maps/Oct13.html#item-3
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