Wednesday, August 1, 2012
Report: Mitt Romney Tax Plan Helps Wealthy The Most
I know, I know. You read that headline and thought or said "quelle surprise," in your most sarcastic voice. But it's nice to have some hard evidence to confirm our suspicions.
According to The Huffington Post, Romney's tax plan will cut some tax breaks that benefit the rich (as well as the rest of us), such as employer-provided health insurance, mortgage interest reduction and credits for low-and-middle-income families, as well as cut individual income taxes for everyone across the board by 20 percent.
Sounds almost empathetic right? But here's the catch: the gains from income tax cut will exceed the coins rich folks--meaning those who make more than $1 million--currently get from the other tax breaks Romney plans to abolish, meaning they'd still come out on top. Read on...
"The report by the centrist Tax Policy Center found that Romney's tax cuts would boost after-tax income by an average of 4.1 percent for those earning more than $1 million a year, while reducing by an average of 1.2 percent the after-tax income of individuals earning less than $200,000.
Because the value of the 20 percent tax cut for richer Americans would exceed the gains they get from popular tax breaks that Romney would chop, they would see the greatest income gain from Romney's possible changes, the study said.
"We add up how much people get from the tax cuts and then add up how much can be potentially be raised," from ending tax breaks, said Adam Looney, an economist and one of the study's authors.
About two-thirds of the $1.1 trillion in revenues that the government foregoes annually because of tax breaks would have to be curbed to fund Romney's tax cut, the analysts said."
Wonder what other tricks Mitt's got up his sleeve?