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Mitt Romney Tax Plan: Study Shows Deduction Caps Don't Pay For Tax Cuts
WASHINGTON, Oct 17 (Reuters) - Mitt Romney's proposed cap on itemizing tax deductions could not on its own raise enough new government tax revenue to compensate for revenues lost by the Republican presidential candidate's plan to slash income tax rates, a think tank said on Wednesday.
The Tax Policy Center, a nonpartisan group that has weighed in on other Romney proposals, said his deductions cap could raise up to $1.7 trillion over 10 years. The center said earlier this year Romney's 20-percent tax rate cut would cost $4.8 trillion.
The Tax Policy Center, a nonpartisan group that has weighed in on other Romney proposals, said his deductions cap could raise up to $1.7 trillion over 10 years. The center said earlier this year Romney's 20-percent tax rate cut would cost $4.8 trillion.
The Tax Policy Center acknowledged its latest estimates were based on an incomplete picture of Romney's tax plan.
"The Tax Policy Center has again inserted their own assumptions in order to reach a biased conclusion," a Romney campaign spokeswoman said on Wednesday.
"The Tax Policy Center has again inserted their own assumptions in order to reach a biased conclusion," a Romney campaign spokeswoman said on Wednesday.
A cap of $17,000 would raise $1.7 trillion over 10 years while the $50,000 cap would raise only $760 billion. If Romney eliminated all itemized deductions, his plan could raise $2 trillion over 10 years, the center has estimated.
Obama has called for a cap on itemized deductions of 28 percent of adjusted gross income for individuals earning more than $200,000 a year and families earning more than $250,000.
Obama has called for a cap on itemized deductions of 28 percent of adjusted gross income for individuals earning more than $200,000 a year and families earning more than $250,000.
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