OBAMA: “Gov. Romney’s central economic plan calls for a $5 trillion tax cut — on top of the extension of the Bush tax cuts, that’s another trillion dollars — and $2 trillion in additional military spending that the military hasn’t asked for. That’s $8 trillion. How we pay for that, reduce the deficit, and make the investments that we need to make, without dumping those costs onto middle-class Americans, I think is one of the central questions of this campaign.”
THE FACTS: Obama’s claim that Romney wants to cut taxes by $5 trillion doesn’t add up. Presumably, Obama was talking about the effect of Romney’s tax plan over 10 years, which is common in Washington. But Obama’s math doesn’t take into account Romney’s entire plan.
Romney proposes to reduce income tax rates by 20 percent and eliminate the estate tax and the alternative minimum tax. The Tax Policy Center, a Washington research group, says that would reduce federal tax revenues by $465 billion in 2015, which would add up to about $5 trillion over 10 years.
However, Romney says he wants to pay for the tax cuts by reducing or eliminating tax credits, deductions and exemptions. The goal is a simpler tax code that raises the same amount of money as the current system but does it in a more efficient manner.
The knock on Romney’s plan, which Obama accurately cited, is that Romney has refused to say which tax breaks he would eliminate to pay for the lower rates.
ROMNEY: Obama’s health care plan “puts in place an unelected board that’s going to tell people ultimately what kind of treatments they can have. I don’t like that idea.”
THE FACTS: Romney is referring to the Independent Payment Advisory Board, a panel of experts that would have the power to force Medicare cuts if costs rise beyond certain levels and Congress fails to act. But Obama’s health care law explicitly explicitly prohibits the board from rationing care, shifting costs to retirees, restricting benefits or raising the Medicare eligibility age. So the board doesn’t have the power to dictate to doctors what treatments they can prescribe.
Romney seems to be resurrecting the assertion that Obama’s law would lead to rationing, made famous by former Alaska Gov. Sarah Palin’s widely debunked allegation that it would create “death panels.”
The board has yet to be named, and its members would ultimately have to be confirmed by the Senate. Health care inflation has been modest in the last few years, so cuts would be unlikely for most of the rest of this decade.