WHAT DOES HE ADVICE HIM ON, FAR EAST POLICY?:

Romney and Adviser Mankiw: They Don't Always See Eye-to-Eye (Sara Murray, 10/20/11, WSJ)

Speaking at Princeton University, Mr. Mankiw, former chairman of the Council of Economic Advisers under President George W. Bush, made the case for a consumption tax, offered support for the Federal Reserve's stimulative experiments and noted that the popular mortgage-interest tax deduction isn't sound policy.

A consumption tax would be levied on what Americans buy instead of their income. The flat tax that Rick Perry supports is one form of a consumption tax because flat taxes typically include exemptions for savings and investment. So is Herman Cain's 9-9-9 tax. Mr. Romney has slammed Mr. Cain's plan, and expressed some concerns about Mr. Perry's flat tax idea.

"I think taxing consumption is actually not a bad idea," Mr. Mankiw said, adding that current exemptions for retirement savings, such as 401(k) plans and Roth IRAs, are a move toward a consumption tax.

Posted by oj at October 20, 2011 9:07 PM
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