This isn’t exactly a revelation, but according to a new study from the Tax Policy Center, Mitt Romney’s tax plan would raise taxes on 95 percent of Americans while cutting taxes on people like himself.
As President Obama said himself yesterday on the campaign trail, Romney wants you to pay more so he can pay less. And Romney already pays a lower rate than you do.
The study from the Tax Policy Center, a joint venture of the Urban Institute and Brookings Institution, says that Romney’s proposals to reduce marginal tax rates, eliminate the alternative minimum tax and maintain all tax breaks for savings and investment would result in scenario where middle- to lower-income households would end up paying more.
The study says if other tax breaks such as those for charitable contributions, mortgage interest and the exclusion for health insurance were cut for all in order to achieve revenue neutrality, middle- to lower-income families would feel the pinch more than higher-income households.
In order to achieve revenue neutrality, households with children and income below $200,000 would pay an average $2,041 more per year in taxes. Among all households earning less than $200,000, the tax hike will average $539.
But taxes for those earning $1 million or more a year will drop $87,000, and for those earning more than $3 million a year, the break is $247,000.
Team Romney is refuting the study from the Tax Policy Center, claiming it’s a biased report produced by shadowy Obama operatives despite having previously cited the Tax Policy Center during the Republican primary season to attack then-candidate Rick Perry.
According to Team Romney, the Tax Policy Center study is flawed because it ignores the trickle — no — the rain of wealth that will coat the masses in Success after Mitt annotates the budget with a few magic asterisks.
“This is just another biased study from a former Obama staffer that ignores critical parts of Governor Romney’s tax reform program, which will help the middle class and promote faster economic growth,” Chen wrote in a statement Monday evening in response to the study by the Tax Policy Center released earlier in the day.
“The study analyzes only half of Governor Romney’s tax program, ignoring the reforms that would make America’s corporations more competitive by moving from the highest corporate tax rate in the industrialized world to one that is comparable to our trading partners. And the study ignores the positive benefits to economic growth from both the corporate tax plan and the deficit reduction called for in the Romney plan. These glaring gaps invalidate the report’s conclusions.”
What Romney policy director Lanhee Chen means to say is that you’re not suppose to run the numbers. You’re suppose to cross your fingers and have faith that every word Romney says will come true. So if Mitt says economic growth will explode after he hands himself another tax cut, well, by golly, you better believe him. And if you don’t, you must hate freedom.
It’s Tax Cut Magic. Practiced by the Masters of the Universe inside the crypts of Saint Reagan’s Church of Latter Day Grifters. Thank you sir may I please have another!?