Thursday, August 02, 2012
Romney Wants To Raise Your Taxes
That is not only my opinion, but also that of three organizations that should know -- the Tax Policy Center, the Brookings Institute, and the Center on Budget and Policy Priorities. You might wonder how it is that taxes will be raised on many while all income groups will get a lower tax bracket. Well, the fly in the ointment is in the "revenue neutral" part of Romney's plan.
After lowering the tax brackets for all income groups, Romney plans to make up for the revenue lost in doing that by eliminating certain deductions. The most often mentioned tax deductions that would be eliminated are the child tax credit, the earned income tax credit, and the mortgage interest deduction. These deductions would make up an insignificant part of the tax deductions for the rich (for those making over $200,000 a year), and as the chart above shows, they would see a nice reduction in the amount of taxes they have to pay.
But for the other 95% of Americans, it is a different story. For many millions of them, those deductions add up to more than the tax cut they would get under Romney's plan -- which means they would actually have to pay more in taxes than they currently have to pay. In other words, the Romney tax cut plan would only be a tax cut for the richest 5% of America. For those making under $200,000 a year, the Romney plan would raise their taxes.
This is why Romney has tried to be as general as possible about his plan before the coming election. He wants people to believe he is offering a tax cut for everyone, when in actuality he is only proposing a tax cut for the richest 5% (which of course, includes him). Don't let him fool you!