Wednesday, August 1, 2012

Romney Plan: Poor and Middle Class would love to pay more so they can save the rich money.

It looks like my hypothesis appears to be right on the money, so to speak. The idea that Republicans care about saving taxpayers money, is bogus. Republican policy will cost the bottom 95 percent more, whether in the form of lost tax breaks or money out of pocket in premiums or fees.

Take their dire predictions that employers will drop employee coverage once “Obamacare” is in place. That's factually wrong. But Romney’s plan will do away with the tax break for employer-provided health care. Without that deduction, an important business expense, employers will drop employee coverage immediately.  

Even my conservative friend goes ballistic defending the rich for the simplistic upside down concept, "it's their money, not the governments." 

So I have to assume, my friend will love the following Romney plan:
Mitt Romney’s plan to overhaul the tax code would produce cuts for the richest 5 percent of Americans — and bigger bills for everybody else, according to an independent analysis set for release Wednesday. The study was conducted by researchers at the Brookings Institution and the nonpartisan Tax Policy Center, who seem to bend over backward to be fair to the Republican presidential candidate.

They even look at what would happen if Republicans’ dreams for tax reform came true and the proposal generated significant revenue through economic growth.

None of it helped Romney. His rate-cutting plan for individuals would reduce tax collections by about $360 billion in 2015, the study says. To avoid increasing deficits — as Romney has pledged — the plan would have to generate an equivalent amount of revenue by slashing tax breaks for mortgage interest, employer-provided health care, education, medical expenses, state and local taxes, and child care — all breaks that benefit the middle class.

Even if tax breaks “are eliminated in a way designed to make the resulting tax system as progressive as possible, there would still be a shift in the tax burden of roughly $86 billion [a year] from those making over $200,000 to those making less” than that.

What would that mean for the average tax bill? Millionaires would get an $87,000 tax cut, the study says. But for 95 percent of the population, taxes would go up by about 1.2 percent, an average of $500 a year.
And remember, some don't pay any taxes:
Sen. Maj. Leader Harry Reid suggests Romney didn't pay any taxes for 10 years. HuffPost: "A month or so ago, he said, a person who had invested with Bain Capital called his office. 'Harry, he didn't pay any taxes for 10 years,' Reid recounted the person as saying. 'He didn't pay taxes for 10 years! Now, do I know that that's true? Well, I'm not certain,' said Reid. 'But obviously he can't release those tax returns. How would it look?'"

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