Romney Tax Good for Rich
The Huffington Post | By Nate
Willis Posted: 08/13/2012
11:39 am Updated: 08/13/2012
Presumptive GOP presidential nominee Mitt Romney's tax plan would decrease
taxes on those making $1 million or more by an average of $250,000,
according to arecent
study by the left-wing Citizens for Tax Justice. The study also notes
that individuals making $500,000 and above would receive a tax break of
approximately $50,000 on average.
"If Romney kept his pledge to avoid increasing the deficit (aside from the
enormous deficit increase resulting from the Bush tax cuts), then someone
will have to face a net increase in their taxes," the report says. "These
figures demonstrate that the very rich won’t be the ones paying for
The Romney plan achieves tax cuts and revenue neutrality by undoing most
tax credits and deductions enjoyed by the middle class, including: mortgage
interest deductions, the child
tax credit and the employer-based
health care exclusion.
President Barack Obama nicknamed Romney's tax plan "Romney Hood" in a
speech earlier this month, saying that the plan would steal from the poor
and give to the rich. It's like "Robin Hood in reverse," Obama said, according
to the Associated Press.
CTJ's study comes on the heels of a similar investigation of Romney's tax
plan conducted by the
nonpartisan Tax Policy Center earlier this month. TPC's report states
that the revenue neutrality resulting from Romney's tax cut for the rich
can be achieved only by increasing the taxes on those making $200,000 or
less per year.
"Because taxpayers above $200,000 as a group have received a net tax cut,
revenue neutrality requires that taxpayers below $200,000 -- about 95
percent of the population -- experience a tax increase," the report
states. "If this increased burden is shared equally among all households
earning less than $200,000, after-tax income among individuals in this
group would decrease by (on average) 1.2 percent (an average tax increase
of $500 per household)."