Here, then, is what the Romney plan really calls for...
First, eliminate the tax loopholes that benefit the wealthy. This actually increases the amount of income they must pay taxes on.
Second, reduce the tax rates for ALL taxpayers, paid for by the added revenue that comes from eliminating the loopholes.
Current corporate tax rate is 35%, but thanks to loopholes, the effective tax rate could be as low as 0% (as was the case for GE). If companies like GE are paying nothing, the rest of us must pay their share, which keeps our taxes high.
But if you eliminate the loopholes, companies like GE would be paying the full 35%. Therefore, we could actually cut the tax rate for everyone. We could cut the corporate rate to, say, 28%. That is still 28% MORE than GE currently pays. That tax revenue could then be used to cut the tax rates for everyone else. Our 28% rate could be reduced to 24%, and the 15% rate could be reduced to, say, 12%.
In such a scenario, actual overall tax revenues would increase, thereby reducing our deficit.
For those who still may not understand, feel free to ask. But the short take is to reduce everyone's tax rate by eliminating the loopholes that keep the wealthy from paying a "fair share."