Mitt Romney has two tax principles. First principle: I’m cutting taxes. Second principle: “People at the high end” should pay the same share of total taxes. Sounds simple enough. It isn’t.
About that first principle: Romney wants to extend the 2001/2003 tax cuts cuts permanently and cut each marginal tax rate by a fifth. That would bring the top marginal tax rate, now at 35 percent, down to 28 percent. To make up some lost revenue, he says he’d eliminate some deductions and exemptions.
About that second principle: “People who are at the high end” stand to keep a lot of extra money when Romney cuts their tax rates by 20 percent. But they won’t pay a higher share of overall taxes? Something’s gotta give.
Read more. [Image: Derek Thompson]