Tax Policy Center says Romney would cut taxes for the rich, increase them for everyone else
By VICTORIA JONES
Talk Radio News Service
The nonpartisan Tax Policy Center considered conservative critiques of its recent, much-publicized analysis of Mitt Romney’s tax agenda. Thursday, it said its conclusion stands: His proposals would mean big tax cuts for the highest-income taxpayers and increases for everyone else.
They say it’s inevitable because of two of Romney’s five goals: his insistence that any tax overhaul should be revenue-neutral, and that it should protect or even sweeten existing tax breaks for savings and investments like those for dividends and capital gains income.
As for his other three goals: cut income taxes by 20%, eliminate the estate tax and end the alternative minimum tax, the authors said they essentially gave Romney the political benefit of the doubt, assuming he first would end all tax breaks for the wealthiest Americans, before touching the same tax breaks for lower-income Americans
The authors also said deep cuts in spending would hurt mostly low and middle-income households because they disproportionately benefit from government programmes and benefits/
To critics who said the study did not assume enough economic growth, the authors said their conclusions were essentially the same even when using growth estimates developed by Gregory Manciw, a Romney adviser. They said they initially assumed Romney would offset the cost of his proposed cut in the corporate tax rate by scaling back other business tax breaks, but Romney advisers said that would not be the case.
Yet that would mean “an even larger tax cut on high-income individuals, requiring even larger cuts to tax expenditures … and correspondingly larger increases in taxes on middle- and/or lower-income taxpayers.”
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