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Study: Romney's Deduction Caps Don’t Pay for Tax Cuts

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    David Freddoso of the Washington Examiner on Romney's proposed tax plan.

  • Duration 3:41
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This transcript is automatically generated

Options all right -- -- -- -- -- moved back to the campaign down governor Mitt Romney.

At the debate the other that he tried to sell his plan for lowering tax rates saying -- pay for it.

By capping deductions by a set dollar amount before we talk about -- that's.

Now how about deductions -- I gotta bring rates down across the board for everybody.

But I -- -- limit deductions and exemptions and credits particularly for people at the high end.

Because I am not gonna have people -- high -- pay less than they're paying now.

The top 5% of taxpayers will continue to pay 60%.

Of the income tax the nation collects.

OK so we're gonna talk about it today because there's a new study from the Tax Policy Center says limiting those deductions would not raise enough revenue to pay for the tax cuts that.

You heard Romney talking about data for does -- the editorial page editor for the Washington examiner joins us from DC and I know the Romney campaign David is not a big fan of this.

Tax Policy Center some of that -- that they've come out with here recently they say the Romney plan cost four point eight trillion dollars and number -- been disputed by the campaign.

But they say a so called deductions cap would only raise one point seven trillion.

Over ten years obviously if that's true you have a math problem what do you say.

What we've actually editorialized on this the the that basically they are leaving out a lot of things from it -- in calculating their numbers and and you know for the most part all the work that they've done studying Romney's tax cut.

They they simply assume that a lot of things they could be -- phase -- deductions that sort of thing.

That they won't be and that's how they end up with that numbers and that's why they're saying the math doesn't work.

-- as much as I'd you know dislike the idea of a candidate putting a plan out there without -- -- like this.

It's not fair to just as -- details that are correct -- that right that's what we have going on here.

That is a political problem though for court has become one it seems for governor Romney and that he hasn't been able to and -- and into.

In -- and it's because he says hey listen I can't have this negotiation.

-- -- -- present I can't.

Tell you what I'm gonna -- because I don't know how congress I'd wanna put all the cards on the table and people right understand that to some extent but the same time.

There's a political problem there -- not in being able you're proposing something that you're not seeing how we -- going to pay for -- how should he tackle that and a better way than he has I.

Agitated truth I don't know I mean in this is a case where you either pay now you pay later President Obama.

Decided to pay later he ran on this health care plan had a lot of specifics in his platform.

And it up during most of it out the window when obamacare passed and now he's the you know after that he ends up we're disappointed supporters and a lot of angry voters who didn't like what it ended up being like.

And and noticed that it wasn't much like when he promised right so -- -- -- wants to the opposite that he doesn't want that problem later so he takes the problem now everybody say behaviors there aren't any specifics in your plan.

I don't really know which -- the better way to go -- the truth but I mean Ryan tried to explicitly make this argument during his debate with vice president Joseph Biden.

He was trying at least he was interrupted by both Biden -- the moderator B was trying to explain it.

If you're gonna deal with congress you have to go in and see what congress is gonna allow because you don't know what kinds of deductions exemptions etc.

they're gonna let you get rid of okay.

So essentially your saying maybe it's best just stay the course there Romney's been scored fairly well on the economy so yeah I you know I don't think I don't think he's really being hurt by this anymore I think this is an issue a couple weeks ago after that second debate when he saw the snap poll numbers.

That -- -- doing so well on the economy doesn't issue where he used to be way ahead of Obama.

Then all of a sudden he found himself behind -- suddenly he's -- on top again and on top with numbers to look better than -- ever -- before.

I don't think this is much of an issue at this point David for -- so Washington on examined data thank you --

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