Biden said that something like five (or six) different studies have concluded that Romney's tax plan would cost the middle class $5-trillion. One of the sources he cited said this late last night.
Joe Biden miscited our work at the debate last night
Alex Brill and Matt Jensen | October 12, 2012, 2:12 pm
Here is the transcript this AEI objects to: Joe Biden:
Now, there’s not enough — the reason why the AEI study, the American Enterprise Institute study, the Tax Policy Center study, the reason they all say it’s going — taxes go up on the middle class, the only way you can find $5 trillion in loopholes is cut the mortgage deduction for middle-class people, cut the health care deduction, middle-class people, take away their ability to get a tax break to send their kids to college. That’s why they arrive at it.
In last night’s vice presidential debate, Vice President Biden said (as best we can decipher) that AEI research supports the assertion that Governor Romney’s tax plan would hike taxes on the middle class.
First, we would note that AEI does not take institutional positions on any policy matters and that the views we have expressed are only our own.
More importantly, Vice President Biden’s assertion is completely incorrect.
In fact, we have demonstrated that Governor Romney’s plan can accomplish his stated goal of providing 20% statutory rate reductions for ordinary income while maintaining distributional and revenue neutrality.
In plain English, that means that Governor Romney is proposing neither an $86 billion tax hike nor a $5 trillion tax cut, as the Obama-Biden campaign repeatedly asserts.
Read Alex Brill’s American piece for a synthesis of our work.
The Romney Tax Plan: Not a Tax Hike on the Middle Class
It is important to understand a few things:
1) The $5-trillion number was NEVER put forth by Romney, all he ever said was an "across the board 20% tax cut" - The democrats then went to a few different (biased) agencies and asked them "how would the results of that look?"
2) The responses they got came from different places, such as the CBO (Congressional Budget Office) which only calculates such things based on current economic conditions and laws. They do NOT take into account any changes in tax policy or the potential for a growing economy to raise tax revenues (which is actually the proven model for balancing the budget if you remember the Clinton years and his benefit from a burgeoning stock market).
3) The CBO came up with the $5-trillion number, and the democrats have PUT that number on Romney's plan saying "Mitt Romney is proposing a tax cut for that will result in a $5-trillion dollar cost to the middle class" and other such liberties with the English language.