William Gale, co-director of the Tax Policy Center, stood by his critical study of Mitt Romney's tax plan on Monday.
The study shows that if his plan were enacted, the Republican presidential candidate would mathematically be forced to limit popular middle-class deductions to pay for the across-the-board cuts. Romney's plan calls for a 20 percent reduction in marginal tax rates, plus the elimination of the estate tax and the alternative minimum tax.
The Tax Policy Center concluded that fulfilling all of these goals while reducing the amount the U.S. Treasury takes in -- and making generous assumptions about the deductions and loopholes enjoyed by the wealthiest U.S. taxpayers -- would cause tax bills to rise for middle- and low-income taxpayers.
In an op-ed Monday, Gale used an analogy to explain the math:
Suppose Governor Romney said that he wants to drive a car from Boston to Los Angeles in 15 hours. And suppose some analysts employed tools of arithmetic to conclude that "If Governor Romney wants to drive from Boston to LA in 15 hours, it is mathematically impossible to avoid speeding." After all, the drive from LA to Boston is about 3,000 miles, so to take only 15 hours would require an average of 200 miles per hour. Certainly other road trips are possible -- but the particular one proposed here is not.
Especially in this inflamed campaign environment, one can imagine the frenzied responses. The Obama campaign might put ads out that say Romney wants to speed or is going to speed. Romney's campaign might respond by saying the study is a "joke" and "partisan," that he supports speeding laws and would never, ever speed, and it is ridiculous to suggest that he would. The Romney campaign and its surrogates might say that the analysts must be wrong because they don't even know what his road plan is or which car he would drive. Besides, Romney never really said he wanted to go LA, he might want to go somewhere closer; he could get to LA without speeding if he took more than 15 hours; he could get somewhere else in 15 hours without speeding. And so on.
The TPC looked at Romney's plan and found that the benefits would go mostly to the rich.
But Romney denied this during the first presidential debate. "My view is that we ought to provide tax relief to people in the middle class. But I'm not going to reduce the share of taxes paid by high-income people," he said.
Romney has also said the plan won't increase the deficit and that it would be paid for by closing tax loopholes. Critics however, including President Barack Obama, have said there simply aren't enough loopholes to close in order to cover the cost of the cuts.
Under heavy pressure for not specifying the deductions that would pay for his tax plan, Romney said that he would cap deductions at $17,000. However, Gale told Bloomberg that doing so “doesn’t come close to paying for the $5 trillion."
Also on HuffPost:
House Speaker John Boehner (R-Ohio)
Commenting on Occupy Wall Street and the redistribution of wealth on ABC's "This Week" recently, <a href="http://abcnews.go.com/Politics/week-transcript-speaker-john-boehner/story?id=14892830&page=5#.TswHj3NPkqV" target="_hplink">House Speaker John Boehner said</a>: <blockquote>Come on. The top 1 percent pay 38 percent of the income taxes in America. You know, how much more do you want them to pay? Well, I'll tell you what: Let's take all the money that the rich have, all of it. It won't even put a dent in our current budget deficit, much less our debt.</blockquote>
Rep. Larry Bucshon (R-Ind.)
Rep. Larry Bucshon <a href="http://gcdailyworld.com/story/1786079.html" target="_hplink">said in an interview</a> with a local Indiana paper that the tax code needs to be simplified, and he invoked the Republican party line that the wealthiest Americans are creating jobs: <blockquote>I'm not for raising taxes on one sector of the economy. I think right now when you have a high unemployment and you raise taxes on the higher income earners, and they are not going to create any jobs. Arguing right now that the higher income earners aren't paying their fair share is not true. The data shows that. The top 1 percent of income earners are paying about 38 percent of the taxes. The top 10 percent are paying about 70 percent of the taxes.</blockquote>
Rep. Mike Kelly (R-Pa.)
During an House Education and the Workforce Committee markup, <a href="http://www.youtube.com/watch?v=CEArFmRDtrw&feature=youtu.be" target="_hplink">Rep. Mike Kelly made a plea</a> to "stop railing against the really wealthy": <blockquote>I've got to tell you something. As a guy who has had to pay his own way his whole life, I am greatly offended by the idea that somehow somebody in Washington knows how to spend my money better than I do. That somebody in Washington knows how to regulate me to the point where I can't even borrow money anymore. You want to talk about people who are afraid? The small banks. They're scared to death to do anything. Why? Because their government has such onerous regulations on them anymore that they don't know about the rules and the regulations that have been put through or haven't even been written. So when you want to sit back and talk about these wealthy, evil people ... you want them to spend money? Make their future certain.</blockquote>
Rep. Scott DesJarlais (R-Tenn.)
Commenting on President Barack Obama's proposed jobs bill in September, Rep. Scott DesJarlais also <a href="http://webcache.googleusercontent.com/search?q=cache:uHUJCTcKdokJ:www.wbir.com/rss/article/183289/2/TN-lawmakers-reaction-mixed-on-Obama-speech-+&cd=1&hl=en&ct=clnk&gl=us&client=firefox-a " target="_hplink">used the "job creators" line</a>. The congressman argued that wealthy Americans are "shouldering the burden" by "already paying the lion's share of taxes, and taxing them more is going to hurt jobs."
Rep. Blake Farenthold (R-Texas)
Two months ago, a handful of local Democrats protested outside Rep. Blake Farenthold's office in opposition to the proposed Buffett Rule Act, which would allow taxpayers to make donations with their income tax returns to help pay down the federal public debt. The bill was named after billionaire Warren Buffett, who has said he should be paying more in taxes. GOP lawmakers responded by suggesting wealthy Americans voluntarily donate extra money when they file their tax returns. "I think everybody is paying their fair share," <a href="http://www.kiiitv.com/story/15591779/local-democrats-stage-protest-on-congressman-farenthold" target="_hplink">Farenthold said</a>, adding, "And before we look at raising taxes on anybody, we've got to get the government spending under control. There's no point in pouring more money into something when it's hemorrhaging out the other end."
Rep. Ann Marie Buerkle (R-N.Y.)
In March, months before the Occupy Wall Street movement arose, Rep. Ann Marie Buerkle <a href="http://www.syracuse.com/news/index.ssf/2011/03/half_applaud_half_jeer_at_rep.html" target="_hplink">expressed sadness</a> at the class warfare in America. "The middle class is being screwed," said the congresswoman at a town hall meeting, but added that the wealthy aren't to blame. "Why do we have class warfare?" she said. "Why do we want to punish the rich? They worked hard for their money."
Rep. John Fleming (R-La.)
Rep. John Fleming made more than $6 million last year, according to the <em>Wall Street Journal</em>. In September on MSNBC, he <a href="http://www.rawstory.com/rawreplay/2011/09/tea-party-rep-only-400000-left-after-i-feed-my-family/" target="_hplink">used himself as an example</a> of why he opposes raising taxes on millionaires: <blockquote>The amount that I have to reinvest in my business and feed my family is more like $600,000 of that $6.3 million. And so by the time I feed my family, I have maybe $400,000 left over to invest in new locations, upgrade my locations, buy more equipment.</blockquote> MSNBC's Chris Jansing responded that the average American makes more like $40,000, $50,000 or $60,000 a year, to which Fleming responded: <blockquote>Again, class warfare never created a job. That's people that will not get jobs. This is all about creating jobs. It's not about attacking people who make certain incomes. You know, in this country most people feel that being successful in their businesses is a virtue, not a vice. And once we begin to identify it as a vice, this country is going down.</blockquote>
Rep. Dan Benishek (R-Mich.)
In August amidst the heated debate over raising the debt ceiling, Rep. Dan Benishek <a href="http://www.petoskeynews.com/news/pnr-benishek-delves-into-debt-ceiling-vote-federal-budget-during-forum-20110824,0,4643945.story" target="_hplink">addressed federal spending</a> at a public forum in Michigan. The congressman said that he would like to ease up on taxing corporations' foreign earnings and that he disagrees with raising taxes on oil companies. <blockquote>I think oil companies pay their fair share. I can understand where the oil company wants to deduct the cost of drilling a well. That's one of the tax breaks for oil companies, the subsidies. They get to deduct the cost of the well the year you drill.</blockquote>