Economist Rosen to Newsmax: Romney Tax Plan Could Raise GDP by 3%

Friday, 12 Oct 2012 04:02 PM

By Todd Beamon and Kathleen Walter

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Mitt Romney’s tax plan can work – eventually raising the nation’s gross domestic product by as much as 3 percent – Princeton University economist Harvey Rosen tells Newsmax TV.

“It is mathematically possible for the Romney tax proposal to accomplish its goals – keep the whole system revenue-neutral, reduce rates but keep the share of taxes paid by the upper-income people about the same by scaling back or eliminating the tax preferences they currently enjoy,” Rosen tells Newsmax in an exclusive interview.

Watch the exclusive interview here.

Rosen, a professor of economics and business policy, recently wrote a paper on the Republican presidential candidate’s tax plan entitled, “Growth Distribution and Tax Reform: Thoughts on the Romney Proposal.”

“There’s going to be lots of tax preferences that are going to be scaled back or reduced,” Rosen said. “Various loopholes. And the reason that’s key is because even though high-income people are going to get a break from the lower rate, a lot of that money is going to be clawed back by broadening the tax base.

“So it is possible to lower rates, broaden the base, keep revenues the same – and make sure that the tax burden on middle-income folks does not go up.”

Rosen said assertions by President Barack Obama’s campaign that the Romney plan would work by “either blowing a hole in the deficit or raising taxes on middle-class families" is misguided.

“That’s just false. It’s possible to keep total revenues the same even for people in the upper income brackets who are facing a lower tax burden,” he said. “And the way you do it is by cutting back or eliminating various tax preferences that they have.

“That’s a fallacy in the Obama campaign’s reasoning. They just seem to have forgotten about this critical part of the Romney plan which is scaling back or eliminating a bunch of tax preferences.”

And all those preferences should be up for grabs, he said. “The mortgage-interest deduction, might make sense to scale that back some. The deduction for state and local taxes, I could imagine scaling that back some.”

Rosen said the Romney plan should eventually increase GDP by 3 percent. “In my view, say, after five or 10 years, we could expect GDP to be about 3 percent higher than it would have been otherwise.”

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Crowdfunding Effort for Ferguson Cop Raises Hefty Sum

Friday, 22 Aug 2014 21:30 PM

A crowdfunding website set up for a white police officer whose fatal shooting of an unarmed black Missouri teen set off  . . .

SpaceX Rocket Explodes During Test Flight

Friday, 22 Aug 2014 21:17 PM

A SpaceX rocket exploded in midair during a test flight Friday, though no one was injured, as the company seeks to devel . . .

Some Blame Cubs' Short-Staffing, Canceled Game on Obamacare

Friday, 22 Aug 2014 18:22 PM

Obamacare is getting the blame for an embarrassing game cancellation at Wrigley Field on Tuesday – a grounds crew that b . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved