Will Mitt Romney abandon his tax-cut plan?

The Republican wants to slash tax rates for everyone without increasing deficits. But at least one member of his economic team isn't sure it can be done

Mitt Romney speaks during a Veterans for Romney event in Springfield, Virginia, on Sept. 27: One of the candidate's economic advisers expressed some doubt this week that Romney could make goo
(Image credit: Alex Wong/Getty Images)

Skeptical economists and liberal critics have long questioned whether Mitt Romney can really deliver on his promise to lower everyone's taxes by 20 percent without blowing a huge hole in the budget. Indeed, a comprehensive analysis by the Tax Policy Center concluded that Romney's plan would rely on the closure of popular loopholes, resulting in big breaks for the wealthy and increased tax burdens on the poor and middle class. This week, Romney economic adviser Kevin Hassett conceded that if the math doesn't add up, the GOP candidate might not be able to cut tax rates as much as he wants. The Romney campaign promptly threw water on Hassett's remark, saying that the GOP nominee's "goals are achievable." Still, Romney is telling taxpayers not to be "expecting a huge cut in taxes, because I'm also going to be closing loopholes on deductions." So... is he going to cut taxes, or isn't he?

Romney has to give up: As Romney's own adviser admitted, says Matthew Yglesias at Slate, the candidate's plan has "a fatal flaw." It's "mathematically impossible" to dole out massive rate cuts without either increasing the deficit or saddling the middle class with a heavier tax burden through changes to the tax code. So what happens? "You stick to the promise of revenue neutrality and stick to the no-tax-hikes-on-the-middle-class pledge, and in that case you... just don't do much of anything."

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