Economy: Economic News, Policy & Analysis - The Washington Post: Why tax reform could help growth

Economy: Economic News, Policy & Analysis - The Washington Post
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Why tax reform could help growth
Oct 16th 2012, 17:32

In large measure, what you think about the tenability of the Mitt Romney tax plan depends on what you think his tax reform proposal can do for economic growth.

Optimistic growth estimates, like those used by the Tax Policy Center, have found only a mild boost from Romney's proposal, such that only $53 billion of the $360 billion annual cost of the plan is recouped due to higher revenues that result from faster growth. Princeton's Harvey Rosen puts it even lower in a paper defending Romney, at around $25 billion.

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