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Romney Economic Plan: Massive Tax Breaks for the Wealthy and Corporations, Not the Middle Class

October 18, 2011 at 9:09 P.M.

Mitt Romney might claim he's looking out for the middle class, but the reality of his economic plan tells a very different story. Romney might like to say he’s going to help Americans, but his proposals slash taxes on corporations and the wealthiest Americans, not the middle class.

ROMNEY OPPOSED OBAMA’S PLAN TO GIVE THE AVERAGE WORKER $1500 A YEAR IN TAX CUTS CALLING IT A “BAND-AID”

  • Romney Said Of The Payroll Tax Cuts In President Obama’s Jobs Act: “I Don’t Like Temporary Band-Aids.” At the Republican primary debate Romney was asked about President Obama’s economic plan. Goldman: “So you would be OK with seeing the payroll tax cuts?” Romney: “Look, I don't like temporary little Band-Aids, I want to fundamentally restructure America's foundation economically.” [Republican Primary Debate, Bloomberg, 10/11/11]

    • Under Obama’s Plan A Person Making $50,000 A Year Would Get A Tax Cut Of $1,550 in 2012. “Under Obama's plan, workers making $50,000 a year would see their take-home pay boosted by $1,550 next year; those making $100,000 would get $3,100.” [AP, 9/9/11]

ROMNEY’S PLAN WOULD ONLY GIVE THE AVERAGE WORKER A TAX CUT OF $54 A YEAR…

  • A Person 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]

…BUT WOULD LOWER TAXES ON THE WEALTHIEST AND CORPORATIONS AND ADD TO THE DEFICIT

  • 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 Is Worth $700 Billion to The Top 2 Percent. [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
    • Repealing Health Care Reform Will Increase The Federal Deficit By $127 Billion Over The 2012-2021 Period, Including Accounting For Removing The CLASS ACT. [CBO Director Doug Elmendorf Committee Testimony, 03/30/11; CBO Director’s Blog, 10/17/11]
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