The National Memo did the math, so that you don’t have to (and because Romney won’t).
Last night, Mitt Romney promised to eliminate our $1.3 trillion annual deficit without raising any taxes. How will he do this? First, reduce deductions for the wealthy. Well, that’s only $165 billion if you eliminate all deductions for the wealthy. The rest of the money? His answer was to grow the economy so that more people are earning money, and thus paying taxes.
Sounds great! So let’s work the math out. Romney said he would add 12 million new jobs over the next four years. If those jobs pay an average of $40,000/year and pay 20% in federal taxes, that will provide $96 billion in additional revenue.
We’re still not close to $1.3 trillion. And that’s not counting the additional money Romney wants to spend on the military, or the $713 billion Romney wants to give to the health insurance companies via Medicare.
So how much would those new jobs have to pay in order to generate enough revenue to eliminate the deficit? On average, those new jobs would have to pay $433,333/year, each.
I see the problem — to Romney that’s a typical middle class salary!
Or let’s look at it another way. If we go back to assuming that those jobs pay $40,000/year, how many jobs would we have to create to eliminate the deficit? Romney would somehow need to create 162.5 million new jobs. That means more than doubling the total number of jobs in the US.