Mitt Romney’s tax plan is more complex than those of his current and erstwhile primary competitors. But in broad effect it accomplishes the conservative goal of dramatically lowering taxes on the wealthy at the expense of the lower and middle classes.
The Urban-Brookings Tax Policy Center crunched the numbers — part of a series of analyses the group has done of the GOP candidates’ tax proposals — and found that the plan constitutes a major tax cut for wealthy Americans. But compared to today’s rates, Romney proposes effective tax increases for people making less than $40,000.
Above that level, Romney’s plan cuts taxes at greater rates for wealthier people. The average millionaire would thus pay $145,568 less in taxes in 2015 than they do today. Taken altogether, that makes the plan a budget buster, meaning greater deficits or deep cuts to federal programs.
Per TPC, “The Romney plan would reduce federal tax revenues substantially. TPC estimates that on a static basis, the Romney plan would lower federal tax liability by $600 billion in calendar year 2015 compared with current law, roughly a 16 percent cut in total projected revenue. Relative to a current policy baseline, the reduction in liability would be roughly $180 billion in calendar year 2015.”