RICHMOND, VA (WWBT) - In this week's Politifact Virginia report- Senator Mark Warner believes a big part of fixing the country's debt problem is reforming the current tax system.
According to Warner there is a win-win scenario available by changing one big part of the way taxes are collected.
"You can cut everybody's (income) taxes in half and actually raise more revenues if you're willing to get rid of all the tax expenditures, tax breaks," Warner said.
Is that true? is eliminating exemptions a way to cut taxes and increase revenues? The reporters of Politifact Virginia say it is "true".
Here is how they made that determination.
In 2012- the federal government estimates the value of personal exemptions will be $1.145 trillion. The government will only collect $1.140 trillion in personal income taxes.
If the U.S. dumped all those tax loopholes and then cut rates in half, the feds would take in $574 billion in additional revenues.
"Warner made clear when he said this that he was basically talking in a bit hypothetical. He isn't saying this is his proposal. He was saying this especially, simply to point out that, from his prospective, that there is an ability to cut rates while still increasing revenues," said Sean Gorman with the Richmond Times-Dispatch.