Washington, Oct. 5 (ANI): President Barack Obama has no satisfactory plan to cope with the frightening level of debt the U.S. Government is accumulating, whereas Republican presidential hopeful Mitt Romney has proposed a plan that will make matters worse.
"First of all, I don't have a $5 trillion tax cut," Romney had said during the presidential debate at Denver.
In fact, Romney has proposed lowering income tax rates, abolishing the estate tax and making other changes that would cost five trillion dollars over 10 years.
When he said he has no such plan, he meant that he intended to make up for the lost revenue by closing loopholes, what is known as 'broadening the base'.
Moreover, he said he can close so many loopholes for rich people that the middle class will end up paying less.
According to the Washington Post, but even you close every rich person's loophole, you don't save enough money to do everything, that's what Romney wants to do.
Romney cited studies that he said will prove that wrong, but when looked closely, the studies proved him wrong.
For example, Harvard economist (and Romney adviser) Martin Feldstein showed that you could pay for Romney's tax cut by taking away deductions, mortgage interest, charitable, state and local tax, from households making more than 100,000 dollars.
But then Romney said he is considering households earning up to 250,000 dollars to be middle class, so the math collapses again, the report said.
According to the report, Romney's plan is irresponsible, even if he could pay for it.
The bipartisan Simpson-Bowles commission, which he rebuked Obama for not endorsing, concluded that the country cannot solve its fiscal problem without raising revenue and cutting spending.
Given the political challenge of raising taxes, it also concluded that the only way to raise revenue would be with tax reform.
By devoting the proceeds of whatever loophole-closing he could manage instead to additional tax cuts, Romney would just lead the nation into debt, the report said. (ANI)
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