inclusion of the old PEP and Pease provisions in the 2008 baseline. The Tax Foundation regrets the error. Budget Consequences of the Tax Plan The Romney tax plan would recover nearly 60 percent of the static projected revenue cost due to economic growth, higher wages and employment, and higher tax collections on the higher incomes. To keep the reform revenue neutral, the government would only need base-broadeners equal to about 40 percent of the static cost. [6] People need to be aware that each dollar of federal spending costs them several dollars in lost wages and income from saving due to the economic damage from the taxes imposed. In the case of the Romney tax plan, each $1 of lost government revenue would raise incomes by nearly $8. Would the public be willing to trade a $1 reduction in government spending for an additional $8 in personal income? Some elements of the Romney plan yield even higher benefits to the public, raising incomes and employment with no cost, and some benefit, to the federal budget, and actually help to pay for the other tax reductions. Nearly all the tax reductions in the Romney plan would have some positive economic results, which would raise incomes and thereby recover some of the lost tax revenue. Most tax reductions do not completely "pay for themselves" with higher revenue, but they do add to economic growth and incomes, creating a significant net benefit to the public. For example, the across-the-board income tax rate reductions