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Discussion: (4 comments)

  1. Max Planck

    It’s a Pete Peterson project. Its about as “bi-partisan” as Pol Pot.

  2. Jon Murphy

    I must admit, both tax plans don’t sit well with me. Both actions (tax raises under Obama and spending cuts under Romney) will likely tip the US economy back into recession next year. As good as some of the sectors have been (especially the consumer), they will not be able to handle the changes next year, creating a minor recession end of 2013/early 2014.

    That being said, for a long term picture, I think Romney’s plan is better. Spending cuts are the proven better method for reducing the debt. Additionally, with the government’s role in the economy shrunk, there will be less crowding out of the private sector.

    President Obama’s plan would have limited short-term benefits followed by bad long-term consequences. Higher tax burdens will likely chase investors and businesses overseas, as well as private capital. Tougher regulatory burdens stemming from the ACA and Dodd-Frank will make expanding businesses and hiring much more difficult, especially for the little guys. Additionally, since many of the rules for Dodd-Frank have yet to be written and we are still testing out the ACA, the uncertainty of thee two major acts could hinder the subsequent economic recovery after the mild 2014 recession.

  3. How can it be revenue “neutral” when the people who lose the tax breaks end up having to pay more than before?

    Don’t the people who lose their tax breaks end up paying more than previous?

    Isn’t the money they were getting back from tax refunds also going into the economy as investments and spending?

    And WHERE in this plan does it reduce the current deficit after it “flattens” ?

    1. Jon Murphy

      Larry,

      All “revenue neutral” means is that, on aggregate, there is no change to the revenue. In other words, on aggregate, the lost revenue in tax cuts is made up for with gains in revenue from closing loopholes.

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