Revenue effect unclear

The point made in the parent node to this refutes the employment gains plan claimed by Diamond on the ground that the labor supply response could be extensive (more workers) or intensive (more hours). However this may not change the added revenue arising - and hence the affordability of the plan.

This point underscores the importance of being clear on what we are arguing about. Romney has claimed, based on the Diamond study, that his tax reform plan will add 6.8 million workers. However this is separate from the argument about whether the added revenue from growth claimed for his plan will be sufficient to fund all its objectives.
RELATED ARTICLESExplain
Visualizing the Romney Tax Debate
Romney's plan stated
But does it compute?
No - it does not compute
The TPC case
Growth effect claim
Ignores growth potential
Growth-supportive studies
1. Rosen
Growth estimate 1 - Diamond study
Labor force analysis
Conflicting assumptions
Revenue effect unclear
Graph of this discussion
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