The Wall Street Journal hones in on the big assumption in the Tax Policy Center study that’s driven much of the media coverage and Democratic attacks against Mitt Romney’s tax plan:
The study’s biggest distortion is its raw assertion that Mr. Romney would refuse to close certain loopholes. In the appendix, the Tax Policy Center lists, among others, two giant tax deductions that it says would go untouched: the exclusion of interest on tax-exempt municipal bonds, and the exclusion of interest on life insurance savings. The study claims that Mr. Romney won’t close these because they are incentives for saving and investment.
One problem: Nowhere do Mitt Romney or his advisers say that these deductions can’t be touched. Senior economic adviser Glenn Hubbard says these deductions are definitely “on the table.”
This is the assumption that TPC’s study was based on, despite prior comments from Romney that indicate these deductions and exclusions could still be on the table (and the latest clarification from the Romney campaign they actually are on the table).
