Tax Policy Center Archives

Mitt Romney’s Plan Will Raise Your Taxes

Unless you’re earning over $1 million a year that is, then you will see your taxes cut by as much as $146,000 a year. But for the middle class Americans struggling to make ends meet, prepare to pay more in taxes if Mitt Romney becomes your president.

The non-partisan Tax Policy Center analyzed Mitt Romney’s tax proposals and, according to the Wall Street Journal, “concluded that Mr. Romney’s plan would reduce taxes significantly for high-income earners (by 6.9% or $146,000 for households making more than $1 million), and increase federal deficits by $180 billion in 2015 compared to current tax levels.”

And despite Romney’s claims, his plan would also raise taxes slightly for low-income families.

Associated Press: “Households making between $50,000 and $75,000 would get small tax cuts, averaging 2.2 percent, or about $250, the study said. People making more than $1 million would get tax cuts averaging 15 percent, or about $146,000.”

Tim Pawlenty’s Policies Makes Bush Tax Cuts Look Liberal

Tim Pawlenty came out with his economic proposal, a financial calamity that would make the Bush Tax cuts look as if it was proposed by former Representative and ultra liberal Alan Grayson. Some of the numbers in the Pawlenty plan are:

Reducing the top individual income tax rate from 35% to 25%
Reducing the top Corporate tax rate from 25% to 15%
Completely eliminate capital gains taxes, taxes on dividends and interest, and the estate tax
Having just two income tax brackets, 10 percent and 25 percent

These drastic steps by Pawlenty are supposed to reduce the federal deficit, but according to the Tax Policy Center, the Congressional Budget Office and the IRS, even if all Pawlenty’s figures add up, revenue generated would be just 13.6 percent of GDP from 2013-2021, and equals a tax cut of $11 trillion over the same time. In comparison, the Bush’s tax cuts were three times smaller than what Pawlenty is proposing.

To put things into perspective, the nice folks at The Center on Budget and Policy Priorities did their research and came up with the following chart.