Skip to main content

Romneynomics
Apparently, Mitt Romney allowed himself to be overheard by the media waiting outside a closed-door Florida fundraiser last night. According to NBC's Garrett Haake, Romney's speech offered more details than his typical stump speech, including his secret plan to pay for his $3.4 trillion trickle-down tax cut:
"I'm going to probably eliminate for high income people the second home mortgage deduction," Romney said, adding that he would also likely eliminate deductions for state income and property taxes as well.

"By virtue of doing that, we'll get the same tax revenue, but we'll have lower rates," Romney explained. "The nice thing about lower rates is that small businesses not get to keep a larger share of what they're earning and plow it back in to hire more people and expand their business."

Keep in mind that Mitt Romney's trickle-down tax cut proposal would cost about $3.4 trillion over the next decade. Now he says his secret plan to pay for it would "probably" be to eliminate the mortgage interest deduction on second homes for high income people and also to eliminate their state and local sales tax deductions.

Given that it's a secret plan, nobody really knows what he means by "high income" but however you slice it, his plan doesn't come anywhere near paying for the tax cuts. In 2001, CBO estimated getting rid of the second home mortgage interest deduction would raise $7.8 billion over a decade—and that's if you got rid of it for everybody. Even adjusting for inflation, it wouldn't make a dent in his $3.4 trillion figure. In in 2008, CBO reported that 37 percent of the benefits from the deductibility of state and local taxes went to taxpayers earning more than $200,000 annually. Over the next decade, the deduction overall will cost about $900 billion, so even if Romney meant what he said, at most you're looking at about $300 billion to $350 billion to pay for a $3.4 trillion tax cut.

The bottom-line is that even if you take Romney at his secret word, he still leaves more than 90 percent of his trickle-down tax cut unpaid for. For a guy who says business his his strong suit and fiscal conservatism is at the core of his campaign, that should be a shocking fact.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site