The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

During Tuesday night’s debate Mitt Romney was asked if numbers in his tax plan add up.

“Well of course they add up,” Romney replied, testily. He then listed all the budgets he’s balanced—running the Olympics (with help from the federal government), running Massachusetts (with help from the federal government) and running Bain Capital (with help from the federal government).

Of course, no study has proven that the numbers add up.

Despite insisting the numbers add up, Romney began brainstorming the actual numbers later in the debate, “And so, in terms of bringing down deductions, one way of doing that would be say everybody gets — I’ll pick a number — $25,000 of deductions and credits, and you can decide which ones to use. Your home mortgage interest deduction, charity, child tax credit, and so forth, you can use those as part of filling that bucket, if you will, of deductions.”

The Tax Policy Center, a non-partisan group sometimes cited by the Romney campaign, looked at Romney’s new plan and discovered… the math doesn’t add up. At the most Romney’s new plan would pay for $1.7 trillion of the $5 trillion in cuts he proposes. And the cuts would mostly benefit high-income taxpayers, of course.

According to Roberton Williams of the Tax Policy Center, “…Romney will need to do much more than capping itemized deductions to pay for the roughly $5 trillion in rate cuts and other tax benefits he has proposed.”

The math doesn’t add up. Just don’t expect Mitt Romney to ever admit that.

Photo credit: AP Photo/Alex Brandon

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

For a long time, inflation has been the phantom of the American economy: often expected but never seen. But the latest Consumer Price Index, which showed that prices rose by five percent from May of last year to May of this year, raises fears that it is breaking down the front door and taking over the guest room.

The price jump was the biggest one-month increase since 2008. It appears to support the warning of former Treasury Secretary Larry Summers, who wrote in February that President Joe Biden's budget binge could "set off inflationary pressures of a kind we have not seen in a generation." Senate Republican leader Mitch McConnell charged last month that the administration has already produced "raging inflation."

Keep reading... Show less