Both Romney and Gingrich claim their policies are good for the American middle class. But the economic plans they’ve both embraced slash taxes on corporations and the wealthiest Americans while doing nearly nothing for the middle class.
ROMNEY’S ECONOMIC PLAN WOULD DO ALMOST NOTHING FOR THE MIDDLE CLASS
Romney Said He Would Eliminate Capital Gains For People Making Less Than $200,000 But Most Capital-Gains Are Paid By The Richest Americans And The Romney Campaign Didn’t Offer An Impact Estimate. “He would eliminate taxes on interest, dividends and capital gains for people making less than $200,000 a year. A campaign spokeswoman declined to offer estimates of the proposal's budget impact ‘because they are still being refined and finalized.’ Most capital-gains taxes are paid by the richest Americans, and Democrats said Mr. Romney's plan would have scant effect.” [Wall Street Journal, 9/6/11]
- A Typical Middle Class Family Nationwide Making Between $40,000-$50,000 Would See An Average Tax Cut Of $54 if Romney’s Proposal To Eliminate Taxes On Capital Gains, Interest, And Dividends Were in Place in 2011. Over 70 percent of these families would see no benefit at all. [Tax Policy Center, 6/16/11]
- Citizens For Tax Justice Director Criticized Romney’s Plan Saying “For People Earning Below $100,000, Cutting The Tax Rate On Interest, Dividends, And Capital Gains Means Almost Nothing.” “‘For people earning below $100,000, cutting the tax rate on interest, dividends, and capital gains means almost nothing,’ said Robert S. McIntyre, director of Citizens for Tax Justice. ‘For those people earning between $100,000 and $200,000, you might be talking several hundred dollars in tax savings. Then, the question is, does he really have a plan that cuts off exactly at $200,000? That would be nuts - the person who makes $200,001 would be kind of angry.’” [Boston Globe, 9/8/07]
ROMNEY’S ECONOMIC PLAN GIVES MASSIVE TAX BREAKS TO CORPORATIONS AND THE WEALTHIEST
Romney Would Keep The Bush Tax Cuts For The Wealthiest Americans. “Mr. Romney said he would keep the Bush-era income-tax cuts unchanged. Mr. Obama wants the cuts, which were set to expire this year, to disappear for the wealthiest taxpayers.” [Wall Street Journal, 9/6/11]
- Extending The Bush Tax Cuts For The Top 2 Percent Would Add $700 Billion To The Deficit. [OMB, The Budget for FY2012, Table S-2, pg. 173]
- Romney Called For Lowering The Corporate Income Tax Rate To 25% From The Current 35% Though Tax Breaks Allow Many US Companies To Pay Little Or No Corporate Tax. “Mr. Romney called for lowering the corporate income tax to 25% from the current 35%. That rate is high compared with other advanced economies, but tax breaks allow many U.S. companies to pay little or no corporate tax. Mr. Romney said a lower rate would encourage companies to keep more operations within the U.S.” [Wall Street Journal, 9/6/11]
- Cutting the Corporate Tax Rate To 25 Percent Would Cost $915.5 Billion. [Analysis of the Paul Ryan Budget Plan, Tax Policy Center, 4/7/11]
- Romney Would Eliminate The Estate Tax. Romney “would seek a balanced budget amendment to the Constitution, cut non-security discretionary spending by 5 percent, eliminate the estate tax and undo the 2010 health care overhaul championed by President Barack Obama.” [AP, 9/6/11]
- Eliminating The Estate Tax Would Cost $178 Billion. The CBO/JCT estimates Mitt Romney’s proposal on the estate tax would cost $178 billion. [CBO, “Reducing the Deficit: Spending and Revenue Options, March 2011]
GINGRICH HAS ENDORSED THE DEVASTATING CUT, CAP, AND BALANCE PLAN
REALITY: GINGRICH SIGNED THE CUT, CAP, AND BALANCE PLEDGE
Gingrich Signed A Pledge To Oppose A Debt Ceiling Increase Unless The Federal Budget Reduces The Debt, Cuts Federal Spending, And Passes A Balanced Budget Amendment. “GOP presidential candidate Newt Gingrich signed onto the Cut, Cap and Balance pledge today, joining other presidential candidates Herman Cain, Congressman Ron Paul (R-Texas) and Senator Rick Santorum (R-Pennsylvania) and former Minnesota Governor Tim Pawlenty. The pledge urges Congress to oppose raising the debt ceiling limit unless three conditions are met: cuts to federal spending to reduce the debt, caps on federal spending and passage of a balanced budget amendment to the Constitution. ‘Balanced budgets are achieved by those who are committed,’ Gingrich said in a press release. ‘Fiscal discipline requires lawmakers to be smart not cheap and requires a different type of thinking than we see in Washington. I am proposing bold solutions because we have big problems. I pledge to be a President who will rein in deficits, the debt and out of control spending. It can be done, I know because we’ve done it before.’” [The Daily Caller, 6/28/11]
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