Ryan’s tax plan: $6.2 trillion short

Source: Ezra Klein

The Tax Policy Center looked into the revenue loss associated with House Budget Chairman Paul Ryan’s plan to cut the tax code down to two rates of 10 percent and 25 percent. They estimate the changes would raise $31.1 trillion over 10 years, or 15.4 percent of GDP. That’s $10 trillion less than the tax code would raise if the Bush tax cuts were allowed to expire, and $4.6 trillion less than it would raise if all of the Bush tax cuts were extended.

The Republican conressman says he’ll “broaden the tax base to maintain revenue…consistent with historical norms of 18 to 19 percent.” So let’s say Ryan needs to find close-enough deductions and loopholes to hit 18.5 percent of GDP. That means he’d need to close about $6.2 trillion in tax deductions and loopholes over 10 years.

That will not be easy. And, as of now, he has not named even one deduction or loophole that he would close.

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About James Crist

How do we stop America's decline? The country is in trouble and we can all feel it. Where did we go wrong? How do we fix it? We now have an auction-based government, for sale to the highest bidder. Politicians have become nothing more than corporate whores and pawns for the rich. If we want our representatives to represent us, let them get their campaign money from us, their constituents. We have to amend the constitution to get the big money out of politics.
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