Wednesday, August 1, 2012
Independent Analysis Of Romney Tax Plan
This study of the Romney tax plan shows that it shifts the tax burden to the middle class. Romney proposes huge cuts in tax rates that would be paid for by reducing tax expenditures. He argues that this would stimulate the economy. Romney does not specify the tax expenditures that he would cut. Probably because many of them, like the mortgage interest rate tax deduction, are very popular. This study reviewed all of the potential tax expenditure cuts, that might be used to pay for the tax rate cuts, and concluded that they made the tax system less progressive. They had more of an impact on the middle class than on high wage earners. It also concluded that potential increases in economic growth from the tax cuts would not pay for the reduction in the tax rates. The Romney tax plan is just a continuation of GOP tax policies that redistribute the tax burden from the rich to the middle class. There are good reasons why the super rich tend to vote Republican. They are better informed about tax policy than the middle class. It makes perfect sense for Republicans to favor those who contribute to their campaigns as long as many in the middle class will vote against their economic interest because they are poorly informed.