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.
Transcript from debate:
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.