Update from Paul Krugman:
And the Romney people respond with deep voodoo, invoking the supposed fabulous growth effects from his tax cuts. And who could argue? Remember how the economy tanked after Clinton raised taxes? Remember how great things were after Bush cut them? Oh, wait.
More seriously, we have lots of empirical work on the effects of tax changes at the top — and none of it supports the Romney camp’s claims. What we’ve just learned is that they were faking it all along. There is no plan to offset the tax cuts; Romney is just intending to blow up the deficit to lavish favors on the wealthy, then use it as an excuse to savage Social Security and Medicare.
Lots of justified talk today about a new Tax Policy Center report on the distributional implications of the Romney tax plan, showing it to be very much a Dooh Nibor – that is, reverse Robin Hood – thing. Obama is talking it up; Romney, predictably, is dismissing the report as the work of a “liberal group”.
The question one might ask is, did TPC – which is actually painstakingly and painfully nonpartisan – make questionable assumptions to get its results, so that some other set of assumptions might portray Romneynomics in a more favorable light? And the answer is no: TPC actually bent over backwards to literally give Romney every possible benefit of the doubt. Read more.