Princeton Economist: Obama Campaign Is Misrepresenting My Study on Romney’s Tax Plan
The Weekly Standard is reporting that the Princeton Economist who did a study on Romney’s tax plan is upset at the Obama campaign for mischaracterizing his work. In fact, according to The Weekly Standard just last night, the Obama campaign put out another mass email claiming that Mitt Romney’s tax plan would either require raising taxes on the middle class or blowing a hole in the deficit:
“Even the studies that Romney has cited to claim his plan adds up still show he would need to raise middle-class taxes [...] In fact, Harvard economist Martin Feldstein and Princeton economist Harvey Rosen both concede that paying for Romney’s tax cuts would require large tax increases on families making between $100,000 and $200,000.”
I can’t tell exactly how the Obama campaign reached that characterization of my work. It might be that they assume that Governor Romney wants to keep the taxes from the Affordable Care Act in place, despite the fact that the Governor has called for its complete repeal. The main conclusion of my study is that under plausible assumptions, a proposal along the lines suggested by Governor Romney can both be revenue neutral and keep the net tax burden on taxpayers with incomes above $200,000 about the same. That is, an increase in the tax burden on lower and middle income individuals is not required in order to make the overall plan revenue neutral.