Like a street façade on a movie set, Romney’s economic plans are designed to project an outward appearance of functionality. But when you look behind their cleverly made-up fronts, there’s nothing to see. Romney’s policy offerings on taxes, spending, and entitlements consistently lack crucial structural details; his campaign seems intent on emulating the outward appearance of policy proposals without providing anything that’s actually workable.
Take Romney’s proposed overhaul of the tax code. Vague on details and short on substance, it’s more like a press release than anything resembling an actual plan to rewrite the country’s massive, complex tax code. The few details it does reveal tend to focus on the goodies Romney would like to offer and less on their price. Romney proposes an across the board tax cut along with cuts to the corporate rate and various other reductions, including a repeal of the alternative minimum tax. Combined, the Manhattan Institute’s Josh Barro estimates that Romney’s proposals would reduce federal tax revenues by up to $5 trillion over the next decade.
In keeping with his vow to balance the federal budget, Romney also promises to make these cuts in a way that’s revenue neutral. How? He’s yet to say. The plan indicates that Romney would rely on dynamic tax effects while closing tax loopholes and reducing spending in order to offset the lost revenue. Which loopholes would he snip? Which spending would he cut? Anyone wondering about these questions might as well ask a magic eight ball, which would at least provide an answer.