By Louis Woodhill, OP/ED | 8/22/2012
On August 18, the Washington Post published an editorial calling Republican presidential candidate Mitt Romney’s tax reform plan “garbage”. Citing reports from the (allegedly) non-partisan Tax Policy Center, the Post said that it is not possible to “broaden the (tax) base” sufficiently to pay for Mr. Romney’s proposed tax rate reductions.
The critics of the Romney tax plan are missing the point. The only “tax base” that matters is GDP. The Romney tax plan will broaden the tax base by increasing GDP. Whatever it does or does not do to broaden the tax base by “closing loopholes” is a sideshow.
The only thing that really matters about any tax plan—whether Mr. Romney’s or Mr. Obama’s—is what rate of real economic growth it delivers. If famed football coach Vince Lombardi had been an economist, he would have said, “Economic growth isn’t the most important thing, it’s the only thing.” Here’s why.