I'm also not sure the numbers add up, though I will leave it up to the CBO. The idea is that by eliminating some deductions from the tax code (and the Alternative Minimum Tax!), you can end up with lower rates but still raise revenue. Except, to do this, you'd have to do an awful lot of stuff:
- Treat capital gains income the same as earned income, or at least raise the tax rate.
- Eliminate the "carried interest loophole" that allows hedge fund managers to treat income as capital gains.
- Cap or eliminiate the mortgage interest deduction.
- Further cap or eliminate the deduction for charitable giving.
- Cap or eliminate the deductibility of employer-sponsored health insurance.