Thursday, August 2, 2012

Study: Romney's Tax Plan Helps Rich, Hurts Everyone Else

The non-partisan Tax Policy Center released a study yesterday whose "major conclusion" is that Mitt Romney's tax plan "would provide large tax cuts to high-income households, and increase the tax burdens on middle- and/or lower- income taxpayers." Romney intends to slash taxes while not increasing the deficit. To make up for the loss of government revenue, tax breaks that benefit the vast majority would have to be drastically reduced:

[Romney's] rate-cutting plan for individuals would reduce tax collections by about $360 billion in 2015, the study says. To avoid increasing deficits — as Romney has pledged — the plan would have to generate an equivalent amount of revenue by slashing tax breaks for mortgage interest, employer-provided health care, education, medical expenses, state and local taxes, and child care — all breaks that benefit the middle class.

“It is not mathematically possible to design a revenue-neutral plan that preserves current incentives for savings and investment and that does not result in a net tax cut for high-income taxpayers and a net tax increase for lower- and/or middle-income taxpayers,” the study concludes.

Even if tax breaks “are eliminated in a way designed to make the resulting tax system as progressive as possible, there would still be a shift in the tax burden of roughly $86 billion [a year] from those making over $200,000 to those making less” than that.

What would that mean for the average tax bill? Millionaires would get an $87,000 tax cut, the study says. But for 95 percent of the population, taxes would go up by about 1.2 percent, an average of $500 a year.

2 comments:

Michael The Molar Maven said...

The republican plan has always been to shift the wealth upward so that it will trickle down to a wider target. After all, didn't the great Ronald Reagan always say that "a rising tide lifts all boats". So it is no surprise that underneath all claims to the contrary, republicans do believe that adding to the wealth of the already wealthy will benefit all. After all, since the wealthy have all they need, the natural thing for them to do is to give it to those who need it more. You see, this all works without any government intervention. If all I need is two dollars and you give me five, of course I'll give away three. Now, just tell me, when has this system ever worked. You can't tell me? That's because is NEVER worked!!!

Jeff Tone said...

They have to know by now that it doesn't work, and that they're just employing a rationalization. All they care about is their wealthy constituency, the one that funds their campaigns.

John Kenneth Galbraith put it correctly: "The modern conservative is engaged in one of man’s oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness.”