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Lanhee Chen, Mitt Romney's policy adviser
MItt Romney policy director Lanhee Chen
Mitt Romney has been calling the Tax Policy Center's demolition of his tax proposal biased. His complaint in a nutshell: You liberals don't take into account the flurry of economic growth that will take place if only we chop taxes. Lanhee Chen, Romney's policy director, wasn't specific in his gripes about the center's claims that the proposal—a rich guy's wet dream the candidate dares to call tax "reform"—would increase taxes for 95 percent of Americans:
“The study analyzes only half of Governor Romney’s tax program, ignoring the reforms that would make America’s corporations more competitive by moving from the highest corporate tax rate in the industrialized world to one that is comparable to our trading partners. And the study ignores the positive benefits to economic growth from both the corporate tax plan and the deficit reduction called for in the Romney plan. These glaring gaps invalidate the report’s conclusions.”
Chen also argues that you can't expect objectivity from a study drafted by a former member of the Obama economic team. But he doesn't point out, as Benjy Sarlin does, that another author of the study was part of George H. W. Bush's Council of Economic Advisers.

Romney's proposal, which would make a 20 percent across the board income-tax cut supposedly paid for by eliminating deductions, has never had specifics attached to it. And that made it tough for the Tax Policy Center to decide what its impact would be. So it created a best-case scenario favorable to Romney. Even then, however, its analysis showed the beneficiaries would be the top 5 percent of the population. Everybody else would see their after-tax income fall.

Chen says, however, that because study didn't include a proposed cut in the corporate tax that will supposedly usher in an economic boom. There are believers and skeptics on that score. The biggest problem comes from analyses not of Romney's future plans but of what has happened in the recent past, namely the Bush tax cuts. The Center for Budget and Policy Priorities, as explained in Romney's new tax cuts would work just like the Bush tax cuts: Enhance economic inequality, found that over a nine-year period those cuts poured the bulk of the benefits into the coffers of the already wealthy.

That upward skew generated no boom. As you may have noticed.

Originally posted to Meteor Blades on Wed Aug 01, 2012 at 04:42 PM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  Hilariously missing (14+ / 0-)

    from Chen's

    ignoring the reforms that would make America’s corporations more competitive by moving from the highest corporate tax rate in the industrialized world to one that is comparable to our trading partners.
    is the word, Ireland -- so often touted by that ilk as being an example of a thriving economy because of a low corporate tax.  What other words are missing?  Oh, yeah, the name of any other industrialized country.

    " My faith in the Constitution is whole; it is complete; it is total." Barbara Jordan, 1974

    by gchaucer2 on Wed Aug 01, 2012 at 04:47:30 PM PDT

    •  Also Hilariously missing..... (13+ / 0-)

      The fact that the Republicans have HAD the lower taxes they have always insisted would "trickle down" and create a new Golden Age of prosperity for the past DECADE.

      I dunno about you, but I am still sitting here in my lawn chair at the poor house, waiting for the first drip.

      So far I see just two....Mitt Romney and his economic advisor.

      Maybe they can tell me why I am not fabulously rich.

      Perhaps it is because THEY apparently pay no taxes at all, which certainly makes it easier, doesn;t it?

      Free markets would be a great idea, if markets were actually free.

      by dweb8231 on Wed Aug 01, 2012 at 04:50:40 PM PDT

      [ Parent ]

    •  Or the fact that as one of the PIGS Ireland's (3+ / 0-)
      Recommended by:
      Gooserock, gchaucer2, Judge Moonbox

      economy isn't exactly flourishing.

      Many people thought Bush was "the kind of guy you wanted to have a beer with". People are beginning to realize that Romney is "the kind of guy you want to pour a beer on".

      by ontheleftcoast on Wed Aug 01, 2012 at 04:58:08 PM PDT

      [ Parent ]

    •  Supply Siders can't explain Clinton prosperity. (0+ / 0-)

      In the early years of the Reagan era, Supply Side economists raised the argument that there's a point where further tax increases can so burden the economy that tax revenues actually decrease. I can accept the possibility. I could be persuaded that taxes were that counterproductive under Jimmy Carter.

      After George Aitch Bush and Bill Clinton raised taxes, the economy saw a constant growth throughout the 90s. Supply Siders could have accepted that taxes were on the safe side of the Laffer Curve, or they could have found an explanation of how an overtaxed economy could have seen the lowest unemployment rate since the Vietnam War. Instead, they resorted to absurdity, saying that ANY tax cut will bring in more revenue--as if we could abolish taxes and so much money would just drift into the government's nets that we wouldn't know what to do with it all.

      Whatever growth resulted from the Reagan tax cut was not repeated when George Dubya Bush repeated his experiment. If Supply Side economics had validity in 1980, the Law of Diminishing Returns has overruled it.

      Just how stupid does Mitt Romney think we are? -Paul Krugman

      by Judge Moonbox on Wed Aug 01, 2012 at 05:38:02 PM PDT

      [ Parent ]

  •  The breaking news should be that Romney Campaign (6+ / 0-)

    found a non-white guy to speak for him and sell his crap.

    "Rick Perry talks a lot and he's not very bright. And that's a combination I like in Republicans." --- James Carville

    by LaurenMonica on Wed Aug 01, 2012 at 04:48:21 PM PDT

  •  I.e., the unproven wet dream of (4+ / 0-)

    the Laffer curve.

    The Laffer curve is nothing more than rightwing, economic navel gazing and runs contrary to most economic theories that have actually worked.

    The most violent element in society is ignorance.

    by Mr MadAsHell on Wed Aug 01, 2012 at 04:49:15 PM PDT

    •  The Laffer Curve has been proven false in US app. (4+ / 0-)

      Sure, if there is a tax near 100%, cutting that tax may increase its collection, but our taxes are absurdly low in this country. We've cut them too much and the GOP prescription has been a total failure. Art Laffer knows that his curve does not increase revenue at 20%-40% rates.

      The GOP knows it is lying to us.

      They just found another fool to tell the same old lie.

      The GOP is the party of mammon. They mock what Jesus taught.

      by freelunch on Wed Aug 01, 2012 at 05:15:17 PM PDT

      [ Parent ]

    •  Isn't it time to invoke the famous George W. Bush (2+ / 0-)
      Recommended by:
      Judge Moonbox, Mr MadAsHell

      saying, "Fool me once, shame on — shame on you. Fool me — you can't get fooled again."

      Eliminate tax breaks that stimulate the offshoring of jobs.

      by RJDixon74135 on Wed Aug 01, 2012 at 05:39:38 PM PDT

      [ Parent ]

  •  Forgive me, but... (2+ / 0-)
    Recommended by:
    Mr MadAsHell, uciguy30

    Am I the only one who wants to smack that self-satisfied and smug little pouty smile off of Chen's face?

    I apologize, but, damn. I know violence is not the answer, but the question is so damn obnoxious looking.

    Don't forget that most men with nothing would rather protect the possibility of becoming rich than face the reality of being poor. - John Dickinson ("1776")

    by banjolele on Wed Aug 01, 2012 at 04:51:38 PM PDT

  •  It's just a rhetorical game to them, and they (3+ / 0-)
    Recommended by:
    uciguy30, Judge Moonbox, Supavash

    assume we're the same.

    It's hard to pursue a discussion when one side is so transparently inauthentic. I hope to witness a serious left-right political discussion sometime before the End Of Days, but I'm not gonna hold my breath.

    "I was a big supporter of waterboarding" - Dick Cheney 2/14/10

    by Bob Love on Wed Aug 01, 2012 at 04:51:45 PM PDT

  •  So his tax plan is... (5+ / 0-)

    ...."lets do everything that got us into this ecnomic mess again, but let's do it twice as much and for twice as long."

    ....and increase taxes on most people.
    That, as I recall, was the difference between Reagan's and Bush 1's tax plans. But to a lesser degree.

    Everybody got to elevate from the norm....

    by Icicle68 on Wed Aug 01, 2012 at 04:51:55 PM PDT

    •  Hah yeah I was thinking this (2+ / 0-)
      Recommended by:
      Judge Moonbox, Icicle68

      It's like you have a scab. You start picking at it because it itches. It starts bleeding. Instead of thinking "hey, I should probably stop picking that", the GOP line of thought seems to be to double down "well, clearly I'm not digging deep or hard enough!"

      Only problem is instead of a single Darwin award candidate getting a staph infection, the entire US gets one. Thanks a lot, GOP :-/

  •  Atlas smugged (6+ / 0-)

    Dudehisattva...

    "Generosity, Ethics, Patience, Effort, Concentration, and Wisdom"

    by Dood Abides on Wed Aug 01, 2012 at 04:54:02 PM PDT

  •  This kind of lunacy reminds me of this... (2+ / 0-)
    Recommended by:
    ontheleftcoast, Judge Moonbox
    A few days before the 2004 presidential election, Ron Suskind, a columnist who had been investigating the White House and its communications for years, wrote in The New York Times about a conversation he had with a presidential adviser in 2002. “The aide said that guys like me were ‘in what we call the reality-based community’, which he defined as people ‘who believe that solutions emerge from your judicious study of discernible reality’. I nodded and murmured something about enlightenment principles and empiricism. He cut me off. ‘That’s not the way the world really works anymore,’ he continued. ‘We’re an empire now, and when we act, we create our own reality. And while you’re studying that reality – judiciously, as you will – we’ll act again, creating other new realities, which you can study too, and that’s how things will sort out. We’re history’s actors.. and you, all of you, will be left to just study what we do’ ”

    Mitt Romney treats people like things. And he treats things - corporations - like people.

    by richardak on Wed Aug 01, 2012 at 04:55:21 PM PDT

  •  If we close our eyes reeeeel tight (4+ / 0-)
    Recommended by:
    ferg, JML9999, bleeding blue, Kinak

    and wish realllly hard...

    maybe this time tax cuts and deregulation will work!

    Also, I can kill you with my brain.

    by Puffin on Wed Aug 01, 2012 at 04:59:05 PM PDT

  •  When will the day finally come... (3+ / 0-)
    Recommended by:
    ferg, Gooserock, gchaucer2

    ...when 1) Americans reject this trickle-down fantasy and 2) 'conservatives' of BOTH parties finally stop trying to use it?

    It  can't come soon enough for me. I've had thirty-two long-assed years of it already. Enough.

    "I feel a lot safer already."--Emil Sitka

    by DaddyO on Wed Aug 01, 2012 at 04:59:13 PM PDT

    •  When Church and Peers and the Public Square (0+ / 0-)

      stop presenting a unified picture in which those things work and liberalism fails.

      Which requires something approaching a new system of government.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Wed Aug 01, 2012 at 05:06:07 PM PDT

      [ Parent ]

  •  Mitten's financial advisors; Underpants Gnomes (1+ / 0-)
    Recommended by:
    Supavash

    Step 1; cut taxes for the wealthy
    Step 2; ?
    Step 3; Profit!

    What could possibly go wrong?

    Romney 2012 - Kiss my (___)@(___), Amercia!!

    by Fordmandalay on Wed Aug 01, 2012 at 04:59:57 PM PDT

  •  Ask Mr. Chen (5+ / 0-)

    to name a single U.S. corp. that actually pays that high rate of tax he is talking about. Just one. Bet he can't.

  •  The Bush Years are a problem (1+ / 0-)
    Recommended by:
    jhecht

    for the thinktank Movement Conservative Rightwing.

    They can pretend that it is not, but it is.

    Mitt Romney is an empty suit.
    His economic policy is whatever the Rightwing Thinktanks say it should be.
    They have a problem, and, by extention, so does he.

    All of these ideas did the opposite of what they claim.

    Not 'didn't work as well as they claim'.

    They were Epic Fail.

    You can't harass the Village into making millions and millions of people forget that everything you are saying was tried during the Bush years, that those years were a virtual free-for-all non-top experiment in Rightwing Thinktank economics, and they failed.

    Miserably.

    The Movement Conservative Right is operating under the delusion that they can "La-La-La-La I Can't Hear You!!!!" this away if they just keep repeating the talking points.

    But the Bush Years happened. They not only hurt instead of helped the economy, they almost destroyed it.

    Can't wish that away. Can't outwait that away. Can't talk your way out of it.

    I am from the Elizabeth Warren and Darcy Burner wing of the Democratic Party

    by LeftHandedMan on Wed Aug 01, 2012 at 05:02:05 PM PDT

  •  Boom Like the 1920's --and Many of Them Say That. (4+ / 0-)
    Recommended by:
    venger, Kinak, howd, Supavash

    But what happened in the 20's like the 2000's was that the flood of money to the very rich had no demand in the productive market because the people were already buying all they could afford.

    The only thing there was to do with the wealth was gamble with it, and we know how that worked out both times.

    The wealth of the rich has to be severely compressed by tax and other policies so that there will be enough demand from the 99% to use the investment. The profound surplus at the top we have today is mirrored by the $2,000,000,000,000 businesses are holding because there's no purpose today for either hiring or investment: shoppers have no more to spend on increased production.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Wed Aug 01, 2012 at 05:02:58 PM PDT

  •  So it's the old "You Peons are too dumb" ploy nt (2+ / 0-)
    Recommended by:
    venger, Supavash

    Not blaming Bush for the mess we're in, is like not blaming a train engineer for a fatal train wreck because he's no longer driving the train.

    by JML9999 on Wed Aug 01, 2012 at 05:03:05 PM PDT

  •  WOW. (5+ / 0-)
    Recommended by:
    JML9999, venger, Kinak, Icicle68, Supavash

    I quite literally burst out laughing when I read this.

    A Romney Golden Age.

    I just love how he claims his tax proposal is misunderstood, yet, won't release any specifics of how said proposal would actually work.  Furthermore, technically can't either, since, he won't release any of this own tax information.

    What a snake oil salesman if there ever was one.

  •  tomorrow the nominee-tweet ? (0+ / 0-)

    or extra-special willard-app announcement ?

    which kog will post it first ?
    will there be a new 'badge' for that ?
    o i hope i hope i hope i hope i hope i hope i hope it's kos...
    ---------

    Addington's Perpwalk: TRAILHEAD of Accountability for Bush-2 Crimes.
    * Join: OBAMA'S TRUTH TEAM *

    by greenbird on Wed Aug 01, 2012 at 05:10:38 PM PDT

  •  Like when he was gov of Mass? (1+ / 0-)
    Recommended by:
    JML9999
  •  What a pile of manure (1+ / 0-)
    Recommended by:
    Habitat Vic

    Ralfaca couldn't produce such unadulterated horseshit as what the Romney campaign is spewing.

    The corporate tax crap is the worst.  The only companies that are actually paying it are the REAL small businesses that are incorporated and don't have the zillions of deductions that the big boys and and don't have the money to hire an army of accountants to find every loop hole in the system.

    I have no problem with lowering the corporate tax rate to 25% or even 20%... but make the fucking corporate masters pay it!!  I read somewhere the Treasury's revenue could increase by around $100 billion a year!

    •  Real corp tax rate is 12.1% (2+ / 0-)
      Recommended by:
      Icicle68, oxfdblue

      Yes, the 35% corporate rate is  the highest statutory rate in the world.  But the actual or effective rate (take all corporate tax returns, add all paid taxes divided by all reported income) and you get - an effective rate for 2011 of 12.1%.  That's the lowest rate corporations have paid in 40 years.

      Your comment is spot on.  If only there were journalists that had the guts/intelligence/integrity to point this out whenever that bullshit 35% rate talking point comes up.

  •  Somebody needs to remind Chen that the (4+ / 0-)
    Recommended by:
    bleeding blue, jhecht, Kinak, Supavash

    corporations whose taxes Romney wants to lower are at this very moment sitting on MOUNTAINS of cash that they are not investing in job creation.  Turning Mount McKinley into Mount Everest is not going to get you any closer to heaven, Mitt.

    Because stupid people are so sure they're smart, they often act smart, and sometimes even smart people are too stupid to recognize that the stupid people acting smart really ARE stupid.

    by ZedMont on Wed Aug 01, 2012 at 05:16:19 PM PDT

  •  EdShow just caught Romney pantsdown (3+ / 0-)
    Recommended by:
    Kinak, DesignGuy, Supavash

    EdShow just provided evidence that during the GOP primary Romney cited this same Tax Policy Institute to trash Rick Perry's plan. So to now claim that the report is biased is truly laughable.

    Ha! Michael Steele concedes that Romney et al have been caught flat-footed.

    I say welcome home Mitt the Twit. Pres. Obama has been waiting patiently for you to return from your travails abroad.

    Let the Games Begin!

    "What the cynics fail to understand is that the ground has shifted beneath them." -- Pres. Obama (1/20/2009)

    by zizi on Wed Aug 01, 2012 at 05:16:23 PM PDT

  •  It's also completely dishonest (1+ / 0-)
    Recommended by:
    Kinak

    to compare our corporate tax rate with countries that have VAT.

    I'm no philosopher, I am no poet, I'm just trying to help you out - Gomez (from the song Hamoa Beach)

    by jhecht on Wed Aug 01, 2012 at 05:20:47 PM PDT

  •  An odd thing is happening to me (0+ / 0-)

    Maybe it's because I've been overly tired this week. Maybe it's some kind of Freudian slip.

    For whatever reason, every time I read "Governor Romney" I "misinterpret" it as "Grover Romney".

    Now, try not to think of an elephant.

    "Doing My Part to Piss Off the Religious Right" - A sign held by a 10-year old boy on 9-24-05

    by Timbuk3 on Wed Aug 01, 2012 at 05:22:31 PM PDT

  •  Has anyone compared the (1+ / 0-)
    Recommended by:
    Kinak

    total taxes paid by corporations in the rest of the industrialized world to those paid by US corporations? All I ever see compared is the corporate income tax rates.

    But what taxes and fees do corporations in foreign countries pay that those here do not? Are there taxes on toxic wastes, for example? Or are these companies contributing to retirement funds at higher rates than ours do?

    Just curious.

    Form follows function -- Louis Sullivan

    by Spud1 on Wed Aug 01, 2012 at 05:25:39 PM PDT

  •  And even though we have the highest corporate tax (0+ / 0-)

    rate, don't we have one of the lowest actual tax rates?  Aren't there so many loopholes and shelters and instances of outright underpayment in our system that we actually collect something like only half of the stated tax rate?

    I'm living in an age that calls darkness light.

    by electricgrendel on Wed Aug 01, 2012 at 05:36:24 PM PDT

  •  Mr. Chen must be... (0+ / 0-)

    ...the special Chinese "handler" sent over by Adelson as a condition of his financial support.

  •  What he really meant... (0+ / 0-)

    He said,

    make America’s corporations more competitive by moving from the highest corporate tax rate in the industrialized world to one that is comparable to our trading partners.
    Or in other words, turning the United States into a third world country.

    "I think it's the duty of the comedian to find out where the line is drawn and cross it deliberately." -- George Carlin, Satirical Comic,(1937-2008)

    by Wynter on Wed Aug 01, 2012 at 09:11:20 PM PDT

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