Romney to Save Taxpayers $2,900 on Average, Millionaires $146K: Report

Republican Mitt Romney’s tax plan would cut taxes for about 75 percent of taxpayers by an average of $2,900, but its impact takes a wide swing among income levels with 13 percent of earners potentially seeing an average increase of $900 in taxes by 2015.
These are the findings by the independent Washington research group, Tax Policy Center, which studied the tax proposal by Romney, the frontrunner for the Republican nomination.
The group compares Romney’s plan to current tax policy under the Obama Administration.
Households making between $50,000 and $75,000 would get relatively small tax cuts, averaging 2.2 percent, or about $250, the group reports.
Those earning more than $1 million would get tax cuts averaging 15 percent, or about $146,000.
Under the Romney plan, taxpayers in the top 0.1 percent of earners would get an average tax cut of $482,940 in 2015, assuming the Bush tax cuts are made permanent.
The study estimates that federal tax revenue would be cut by $600 billion, or 16 percent, in 2015.  This assumes the Bush tax cuts are allowed to expire at the end of this year, as presently planned.
If the Bush tax cuts do not expire, Romney’s plan would reduce revenues by $180 billion in 2015, the center said.
Romney’s campaign contends that improvement in the economy would lead to more revenue, disputing the study’s findings.
Romney has said he wants to make permanent the 2001 and 2003 Bush tax cuts, which ballooned the budget deficit. They were extended in late 2010 under intense partisanship in Washington over tax and spend policies.
Permanently extending the Bush tax cuts could increase the federal debt almost $3 trillion over the next 10 years, the Congressional Research Service reported in September.
Romney’s plan would also cut the top corporate tax rate from 35 percent to 25 percent, and eliminate investment taxes for middle-income Americans.
Romney would also permanently repeal the 0.9 percent tax on wages and the 3.8 percent tax on investment income of high-income individual taxpayers that were imposed by the 2010 health reform legislation and are scheduled to take effect in 2013.

One thought on “Romney to Save Taxpayers $2,900 on Average, Millionaires $146K: Report

  • January 6, 2012 at 8:17 pm

    Ok… so how are we going to pay for these tax entitlements for the wealthy?

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