Tuesday, October 2, 2012

Math is Hard!

By: Dale Bowling

When asked to explain the math in the Romney/Ryan economic plan, Paul Ryan responded that there wasn’t time in the interview.
It sounds like an excuse and it is. The real reason why Republicans haven’t fleshed out their plan is that they know that if they explained the details, the American public would realize that the economic plan makes no sense.
Let's do the math.
Here are the parts to their equation:
1. Tax Cuts
It starts with a huge tax cut. A 20% tax cut for everyone and a reduction of the top corporate tax rate from 35% to 25%. This will reduce tax revenue by about $5 trillion over ten years. Yes, trillion with a “t”.
2. Spending Cuts
It requires a huge spending cut- between $5.3 trillion and $7 trillion. Yes, with a “t” again. What would they be cutting? Everything you like (unless it’s the military).
3. Ending Tax Loopholes and Deductions
At first glance, this sounds good, but which loopholes and deductions? Is your mortgage deduction in peril? Child tax credits? They’ve already cut $10-12 trillion dollars from the federal budget (adding tax cuts and spending cuts.) Can they make up enough revenue to keep us from blowing up the deficit?
Your guess is as good as anyone’s. Republicans haven’t condescended to tell us which loopholes and deductions they’ll be cutting.

Republicans know how Americans love a good surprise come tax season!
4. Balanced Budget
 Lastly, it depends on a balanced budget amendment. Balanced budget? Sounds fiscally responsible. But without raising taxes, it is impossible. Can ending tax loopholes and deductions really add up to the huge tax cuts and spending cuts that they advocate? Of course not.
Do the math. Huge Tax Cuts + Huge Spending Cuts - Some Tax Loopholes = A Lower Deficit and A Balanced Budget?? It just doesn't add up.
Democrats have a jobs plan before Congress called the American Jobs Act. It’s been there for a year, fully paid for and is already to go. What’s (or who’s) holding it up? You do the math.



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