Beware “tax reform”: Mitt Romney’s all for it

Beware “tax reform”: Mitt Romney’s all for it

by digby

Here’s a little hint about how the next looming Grand Bargain/fiscal cliff showdown is likely to end up:

During a Republican primary debate last August, all GOP candidates – including Romney – said they would reject a hypothetical proposal to trade $10 in spending cuts for $1 in tax increases.

“I do feel that way,” Romney said in an interview broadcast Sunday on the CBS program “Face the Nation”, defending that stance.

“Government is big and getting larger and there are those who think, well the answer is just to take a little more from the American people,” Romney added.

Romney said that his plans would spur economic growth that brings in new revenues without raising rates.

“We can have lower rates, as I have proposed, that creates more growth and we can limit deductions and exemptions,” Romney said, and touted his plans to cut spending.

I would say that’s just campaign rhetoric and that nobody will care what Romney’s said about this if he loses the election. But unfortunately, he’s lined out the area of “common ground” that the Democrats have already signaled they want as well: tax reform.

It’s fairly meaningless in itself. The wealthy will figure out ways around it almost immediately and it’s highly unlikely to raise any money.(In fact, it’s designed not to.) The question is what the Democrats might agree to do in exchange. The Simpson Bowles travelling salvation show is making the congressional rounds selling a toxic brew that places all the emphasis on “sacrifice” for the polloi with reassurances that it won’t “harm business.” It’s very easy to see a deal forming that includes heavy cuts in exchange for phantom “tax reform.” Both Parties can claim victory, you see. And it will be — it will be a victory for the 1% and a massive defeat for the rest of us.