| Brill article VoorArgument1 #232790 The Romney Tax Plan: Not a Tax Hike on the Middle Class |
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+Citaten (1)
- CitatenVoeg citaat toeList by: CiterankMapLink[1] The Romney Tax Plan: Not a Tax Hike on the Middle Class
Citerend uit: Alex Brill - Research Fellow, American Enterprise Institute
Publication info: 7 October 2012 - article in The American online magazine
Geciteerd door: Peter Baldwin 4:59 AM 31 October 2012 GMT
Citerank: (4) 231146The critics challengeCritics of the TPC analysis question the exclusion of two major tax preferences - the exclusion of interest on state and local bonds and the exclusion of inside-buildup on life insurance vehicles. According to the TPC eliminating these exclusions could raise $45 billion in tax revenue.13EF597B, 231149Brill - small is enoughSome commentators point out that only a small dynamic growth effect is needed by the Romney plan - especially when such an effect is considered in conjunction with putting some tax preferences excluded by the TPC back on the table.13EF597B, 231222Brill - what about capital formationAlex Brill has responded to the TPC's quotation of his paper. While accepting the point about labor supply, he claims that tax reform of the Romney type would lead to increased capital formation and improved allocation of resources in the economy which would boost growth.13EF597B, 231226Obamacare inclusionThe revenue baseline is inflated. The TPC included in its baseline Obamacare taxes which Romney has not pledged to offset. This point is conceded by some defenders of the TPC analysis such as Josh Barro (see citation).13EF597B
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| Fragment- The TPC model has an important limitation when it is used to consider the impact of such large reforms as Romney’s plan. It assumes that any tax reform would not help the economy. In this sense, the TPC model is consistent with the models used by the official revenue estimators at the U.S. Treasury Department and the Joint Committee on Taxation. But those models are intended primarily to analyze the impact of modest changes to the tax code, not fundamental tax reform. In fact, there is plentiful economic evidence that tax reform could result in measurable economic growth. Depending on the reform and the model used to analyze it, tax reform can increase the capital stock, encourage work and innovation, and improve the allocation of resources in the economy. |