The Santorum Slash: Rick Does NOT Tell Taxes to Take a Hike

Scoring Santorum's Tax Proposals

Rick Santorum, whose campaign has had highs and lows in January (but comparatively speaking, much better highs than bad lows) has made a variety of statements in regard to the federal income tax while speechmaking and debating. The Tax Policy Center, associated with the presumably left-leaning Urban Center and Brookings Institute, estimated that if all Santorum's proposal were to be enacted; tax revenue losses would be $1.3 trillion or 40% of present tax revenue. Among former Senator Santorum's tax proposals are continuation of the "Bush" tax cuts early in the prior decade; collapsing tax brackets to two (10% and 28%), eliminating the alternative minimum tax, cutting capital gains and dividend taxes to 12%; the elimination of the estate tax and elimination of new taxes associated with "Obamacare."

A 40% drop in tax revenues would be a major shock to the U. S. Treasury; but two things to consider: [1] there is almost no chance that Santorum would everything he proposes through Congress; especially controversial provisions like the capital gains/dividend rate cut; [2] there probably would be some offsetting revenue from greater economic activity (though who knows if such an offset would reach Lafferian levels). Republican base voters should be excited about Santorum's tax proposals; moderates probably not so much.