Romney Plans to Cut All Middle Class Tax Deductions and Credits: Some Evidence Suggesting Yes

[amborin]

".....Mitt Romney has been desperately trying to refute a study by the Tax Policy Center showing that he can’t mathematically achieve his goals of reducing income tax rates while shielding the middle class from a tax increase and not adding to the deficit. If Romney is committed to his rate reduction and deficit neutrality, he would have to raise middle class taxes by $2,000, even under the most generous assumptions.

snip

So now the Romney campaign is touting a 2006 study from the congressional Joint Committee on Taxation that he claims vindicates his approach, telling Roll Call the study shows “how a ‘Romney-style tax plan’ could bolster growth.” According to the study, tax reform that eliminates deductions and loopholes and reduces income tax rates will slightly increase economic growth over a decade. But the study assumes that nearly all middle class tax breaks — including those for children, mortgages, and employer contributions for health care — are repealed in their entirety:

Under the proposal, all personal exemptions, itemized deductions, personal credits except for the earned income credit, and all above-the-line adjustments to income except for retirement savings deductions and the deduction for self employment taxes would be repealed. The largest categories of deductions repealed are present-law deductions for home mortgage interest expenses, State and local taxes, and charitable contributions. In addition, the exclusions for certain employee fringe benefits, such as employer contributions for health and life insurance, would be repealed. The standard deduction would remain.

The study also found that such a plan would result in the “redistribution” of income tax liability from high-income earners to the middle class."


http://thinkprogress.org/tag/mitt-romney/

[anarch]

1. well in that case the numbers start to make some sense

getting a little closer to balancing out, anyway.

if you then also eliminate pretty much every social program and completely gut medicare, even closer still.

might have to also get rid of all the regulatory agencies and other such non-DOD government entities...

I can't imagine why the man won't come clean with all these things--doesn't he want America to understand what his plan is?

[porphyrian]

2. I don't intend to allow him the chance to show us what he'd do as President; I've already voted...

...for President Obama.

[OldDem2012]

3. A plan that hare-brained will NEVER get through both houses of Congress. nt.

[abumbyanyothername]

4. Romney has zero intention of implementing any tax plan

"He thinks we're dumb . . . " But not in the way that President Clinton meant.

The idea is to promote this fully paid for 20% across the board cut in rates. To be paid for by eliminating loopholes and deductions. But when Congress cannot agree on the elimination of deductions and the tax plan falters . . . he will blame the democratic party for the failure.

When it was set up to fail from the start.

[Angry Dragon]

5. This has always been his plan