Paul Krugman’s “Obama is Missing”

Dr. Krugman alleges in his April 11 column that the $2.9 trillion dollars that would have to be made up by Mr. Paul Ryan’s tax cut could not easily be made up by merely closing tax loopholes because, as he writes:

“The nonpartisan Tax Policy Center puts the revenue loss from these tax cuts at $2.9 trillion over the next decade. House Republicans claim that the tax cuts can be made “revenue neutral” by “broadening the tax base” — that is, by closing loopholes and ending exemptions. But you’d need to close a lot of loopholes to close a $3 trillion gap; for example, even completely eliminating one of the biggest exemptions, the mortgage interest deduction, wouldn’t come close.”

In fact, it appears that closing that particular loophole would net $210 billion a year. This author claims $400 billion. The White House claims the figure is $131 billion. The St. Petersburg Times’ analysis claims that the impact is decreasing and is down to about $93 billion per year.

At worst, then, the loophole — if fully closed — would make up for one third of the lost tax revenue. At best, it would be in the neighborhood of 75%.


Filed under: Politics, , ,

One Response

  1. Alyson says:

    “The kids who are graduating into the 2011 job market are never going to have the lives they should have had,” says economist Paul Krugman in this video. A grim outlook for the next generation of America’s workforce. http://f4a.tv/hr8Ebq

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