"Moody’s Chief Economist On Romney’s Tax Plan: ‘The Arithmetic Doesn’t Work’"
The fact that Mitt Romney’s tax plan is mathematically impossible was reinforced again on Friday, when Mark Zandi, a former John McCain campaign adviser and Chief Economist at Moody’s Economy, admitted as much.
Speaking on CNN’s “Starting Point,” Zandi acknowledged a study by the Tax Policy Center that shows Romney’s plan to lower taxes by 20 percent across the board, while making up those losses in government revenue by closing loopholes on the wealthy, doesn’t add up. Zandi even went so far as to say that “the arithmetic doesn’t work as it is right now”:
ZANDI: Yeah, I think the Tax Policy Center study is the definitive study. They’re non-partisan, they’re very good. They say given the numbers that they’ve been provided by the Romney campaign, no, it will not add up. Now, the Romney campaign could adjust their plan. They could say okay I’m not going to lower tax rates as much as I’m saying right now and they could make the arithmetic work. But under the current plan, with the current numbers, no it doesn’t. I’ll say one other thing, though. I think it is important that we do focus on the so-called tax expenditures in the tax code. Those are the deductions, and credits, and loopholes in the code. We need to reduce those, because if we do we’re going to make the tax system fairer, easier to understand and ultimately lead to stronger growth. So that’s the right place to focus. But, no, the arithmetic doesn’t work as it is right now.
Closing all the loopholes and ending all of the deductions currently given to the wealthy does not make up for the losses of giving everyone in the country, particularly the wealthy, another tax break. The only way Romney’s plan will not add to the deficit is if middle class families pay over $2,000 more in taxes annually.