Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan | TigerDroppings.com

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L.A.
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Los Angeles
Member since Aug 2003
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Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

Last night, the Obama campaign blasted out another email claiming that Mitt Romney's tax plan would either require raising taxes on the middle class or blowing a hole in the deficit. "Even the studies that Romney has cited to claim his plan adds up still show he would need to raise middle-class taxes," said the Obama campaign press release. "In fact, Harvard economist Martin Feldstein and Princeton economist Harvey Rosen both concede that paying for Romney’s tax cuts would require large tax increases on families making between $100,000 and $200,000."

But that's not true. Princeton professor Harvey Rosen tells THE WEEKLY STANDARD in an email that the Obama campaign is misrepresenting his paper on Romney's tax plan:

I can’t tell exactly how the Obama campaign reached that characterization of my work. It might be that they assume that Governor Romney wants to keep the taxes from the Affordable Care Act in place, despite the fact that the Governor has called for its complete repeal. The main conclusion of my study is that under plausible assumptions, a proposal along the lines suggested by Governor Romney can both be revenue neutral and keep the net tax burden on taxpayers with incomes above $200,000 about the same. That is, an increase in the tax burden on lower and middle income individuals is not required in order to make the overall plan revenue neutral.

You can check the math that shows Romney's plan is mathematically possible here.

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Elcid96
LSU Fan
Member since May 2010
5269 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


But...but...but...CNN swore the fact checkers had this right...it can't be, it just can't be.


I guess the next step is to talk to the Princeton Economist trash collector to see if they can run some mud up on him.






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TygerTyger
LSU Fan
Houston
Member since Oct 2010
3199 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


Wait, you mean "Math" is actually accurate if you use the right equation that takes in to account ALL of the data?

But, that would mean that 0bama's snarky "do the math" attack is full of holes, and inaccurate.

UNPOSSIBLE!






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lsu_tiger_az
LSU Fan
AZ/LA
Member since Mar 2004
30241 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

Wait, you mean "Math" is actually accurate if you use the right equation that takes in to account ALL of the data?

But, that would mean that 0bama's snarky "do the math" attack is full of holes, and inaccurate.

UNPOSSIBLE!


FORWARD..... regardless of the facts







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L.A.
New Orleans Saints Fan
Los Angeles
Member since Aug 2003
37360 posts
 Online 

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

I guess the next step is to talk to the Princeton Economist trash collector to see if they can run some mud up on him.
That would be funnier if it didn't seem like a real posibility.






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Elcid96
LSU Fan
Member since May 2010
5269 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


Don't be surprised if they try to discredit this guy.

Funny how one day they will hang their hat on him and the next they will try to destroy him.






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udtiger
LSU Fan
Louisiana
Member since Nov 2006
23580 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

Don't be surprised if they try to discredit this guy.


Chicago way...






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LSUAlum2001
LSU Fan
Tier BP
Member since Aug 2003
27458 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

I can’t tell exactly how the Obama campaign reached that characterization of my work. It might be that they assume that Governor Romney wants to keep the taxes from the Affordable Care Act in place, despite the fact that the Governor has called for its complete repeal. The main conclusion of my study is that under plausible assumptions, a proposal along the lines suggested by Governor Romney can both be revenue neutral and keep the net tax burden on taxpayers with incomes above $200,000 about the same. That is, an increase in the tax burden on lower and middle income individuals is not required in order to make the overall plan revenue neutral.

You can check the math that shows Romney's plan is mathematically possible here.


Uhh.. It's arithmetic!






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LT
Southeastern LA Fan
The City of St. George
Member since May 2008
2931 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

I guess the next step is to talk to the Princeton Economist trash collector to see if they can run some mud up on him. That would be funnier if it didn't seem like a real possibility.


I bet this economist doesn't hug his trash-man anyway... Not Gatorade one....






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
33383 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


That article is funny. Dude is grasping at every straw he can find to attempt to build a best case scenario under Romney's plan to simply accomplish revenue neutrailty. It is really pathetic.

Here is why:

1. The BEST case scenario according to the Tax Policy center is an $86B tax increase to the middle class that is shifted away from the high-income.

2. The author assumes economic growth due to the plan. This is far from a given. Most believe the second round of Bush Tax Cuts did NOT result in an increase in GDP. But, we will go ahead and assume GDP growth from the cuts in out ultra rosey scenario from the article. We still need to make up $33B just to not have an INCREASE ON THE MIDDLE CLASS.

3. So following the author here, he decides Romney's plan will start taxing the cash surrender value of life insurance policies and make all tax exempt income on bonds taxable. Now, keep in mind this is in addition to eliminating practically all deductions - home mortgage interest deductions, charitable contributions, state tax deductions, etc. These are NEW TAXES. Not eliminating deductions, but additional NEW TAXES on an exempt income and the increase in the value of an asset. And these are just items the author of the article came up with after Romney has said he absolutely would not raise taxes at all. So, I am not sure why the author did this at all.

So, with the elimination of all deductions and exemptions available to individuals, economic growth which is in no way gauranteed from the tax cuts, and two new taxes (one to an item of income previously exempt and the other to an item that has never been taxable and is not income at all), we are able to finally achieve a neutral tax plan. Nevermind this just means the debt/deficit will keep growing as fast as ever since Romney's plan is NOT even designed to lower either, but just to be revenue neutral.

What. A. Joke.



This post was edited on 10/8 at 12:31 pm


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RTR America
USA Fan
Memphis, TN
Member since Aug 2012
20104 posts
 Online 

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

What. A. Joke.


Bush Tax Cuts brought in record revenue you partisan hack

The economy will grow and again Obama's plan? Tax the rich? That will put a real dent into the deficit.......






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wartiger2004
WARTIGER2004
Member since Aug 2011
7007 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


Its simple but because the POTUS is a socialist and does not care about putting people back to work.You lower the rates on companies which encourages hiring more employees which then PAY TAXES.





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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
33383 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


I want to be clear here. There are only 3 possible results from the very broad outline of Romney's tax plan (assuming he sticks to it).

Plan:

Part 1: 20% tax cut to individuals across the board.

Part 2: Elimination of deductions and exemptions to pay for it.

Outcomes:

1. Cut is passed along with eliminations of deductions to pay for it. Peoples tax rates are 20% lower and ALL itemized deductions are gone.

Comment: This will result in a large tax decrease for the wealthy and an increase for the middle class since itemized deductions are proportionally larger for the middle class income levels than the wealthy. Nevermind what it will do to charities and potentially the housing market when those deductions are gone.

2. The cuts are passed, but congress balks at getting rid of all itemized deductions and shifting a greater percentage of the overall tax burden from the upper to middle class.

Comment: Debt/Defict grow rate explodes.

3. Neither the cuts nor the loss of itemized deductions can be agreed upon by Congress.

Comment: Things continue as they are now.


Personally, I think number 2 and 3 are the only possibilities with # 3 being by far the most likely if Romney was to be elected.

Also, it is IRRESPONSIBLE and borderline dishonest to ASSUME massive GDP growth from to make your plan work against all odds. You cannot take a huge gamble on the hope and prayer that it will just magically work out.



This post was edited on 10/8 at 12:45 pm


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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
33383 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

Bush Tax Cuts brought in record revenue you partisan hack


Educate yourself son. Then come back and talk to me.






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The Easter Bunny
Georgia Tech Fan
Minneapolis, MN
Member since Jan 2005
41747 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

and an increase for the middle class since itemized deductions are proportionally larger for the middle class income levels than the wealthy. Nevermind what it will do to charities and potentially the housing market when those deductions are gone. 


What percentage of middle class families itemize vs take the standard deduction?






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
33383 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

What percentage of middle class families itemize vs take the standard deduction?


100% of homeowners in the U.S. Plus some more, but primarily every single homeowner, so the majority since we are talking middle class.






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JohnnyKilroy
New Orleans Pelicans Fan
Member since Oct 2012
8298 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

Also, it is IRRESPONSIBLE and borderline dishonest to ASSUME massive GDP growth


2.29%...MASSIVE


But you're assumptions aren't dishonest right? It's completely honest to assume that their will be no growth right?






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RTR America
USA Fan
Memphis, TN
Member since Aug 2012
20104 posts
 Online 

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


From 2004 to 2007, federal tax revenues increased by $785 billion, the largest four-year increase in American history. According to the Treasury Department, individual and corporate income tax receipts were up 40 percent in the three years following the Bush tax cuts.

fricking barner






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Elcid96
LSU Fan
Member since May 2010
5269 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


quote:

That article is funny.



And so it begins.

First one ....we love it (although it was only 1 article they hang their hat one)

2nd one....Oh now ARTICLE FUNNY NOT SO FACT NO MORE

So predictable, no wonder your boy got his arse kicked on stage the other night. I called it within the first five minutes what some would say.


Now go back and read some more talking points...bye bye






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USMCTiger03
LSU Fan
Member since Sep 2007
62305 posts

re: Princeton Economist: Obama Is Misrepresenting My Study on Romney's Tax Plan


BOOM!!







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