Romney Tax Plan: Two Big Unknowns - Oct. 16, 2012

Romney’s got a gifting table scam going — those in at the top benefit while those at the bottom watch the whole pyramid scam collapse on them. The rich will get their tax break, but you can bet that congress isn’t going to have the real grit or determination to cut any deductions. So the rich will run away with yet another tax break to their banks in the Caymans while the deficit balloons like crazy if Americans are foolish enough to actually elect Romney.

The nature of campaigning is to make promises. The nature of governing makes it hard to keep all those promises. And so do unforeseen events, like recessions.

That may be why even those who broadly favor the kind of tax reform that Mitt Romney is proposing — lower tax rates, fewer tax breaks — worry that his $5 trillion plan might not deliver all that he’s promised.

If elected, Romney says he would work with Congress to lower income tax rates by 20%, repeal the Alternative Minimum Tax and make investments tax free for everyone except those making more than $100,000 ($200,000 if married).

The rich as a group, Romney says, would continue to pay the same share of revenue they pay today, and the middle class would see its tax burden lowered.

His plan wouldn’t add a penny to deficits, Romney promises, because his tax cuts would be paid for through a combination of reduced tax breaks and the economic growth his plans would generate.