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Subscribe to RSSThe general election is shaping up to be a fight over the middle class. Both President Barack Obama and Mitt Romney, the GOP frontrunner, have continuously argued in speeches that their policies would most help the middle class.
But Romney’s argument took a hit last night, undercut by a detailed analysis by nonpartisan Tax Policy Center that showed Romney’s plan focuses tax cuts on the rich, while cutting taxes marginally for the middle class. It also would effectively raise taxes on those making less than $40,000 a year, the analysis found, when tax cuts put in place by Obama would be allowed to expire.
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"If I'm going to use precious dollars to reduce taxes, I want to focus on where the people are hurting the most, and that's the middle class," Romney said at an Oct. 11 debate. “"I'm not worried about rich people. They are doing just fine. The very poor have a safety net; they're taken care of. But the people in the middle, the hard-working Americans, are the people who need a break. And that is why I focused my tax cut right there."
On Oct. 5, he said the middle class was a victim of “friendly fire” from Obama, who contends he is a “warrior for the middle class.” “If that's the case, I think there has been a severe case of friendly fire,” Romney said. “Because he has not done what the middle class of America needs to have a prosperous and bright future. In fact almost everything he did has hurt the middle class."
But those are increasingly difficult arguments to make when, under Romney’s plan, those making more than $1 million a year would see a tax cut of about $146,000, a 6.9 perent change in after-tax income, while those making between $50,000 and $75,000 would see just an average tax cut of about $250, just a 3.3 percent change, according to the center’s analysis.
In fact, not only is the amount of after-tax income greater the higher the income level, but the percent change also increases the more money someone makes.
The Romney campaign takes issue with the analysis, especially considering these assumptions in the center’s analysis: “TPC’s analysis measures the change in tax liabilities against two alternative baselines: current law, which assumes that the 2001-10 tax cuts all expire in 2013 as scheduled, and current policy, which assumes that the 2011 law is permanent (except for the one-year payroll tax cut and temporary investment incentives). Compared with the current law baseline, the Romney plan would cut taxes for about three-fourths of taxpayers by an average of more than $4,700. In contrast, compared with current policy, about 13 percent of tax units would see their 2015 taxes go up an average of more than $900 while 42 percent would get tax cuts averaging nearly $2,900.”
Romney spokeswoman Andrea Saul said in an email: “Mitt Romney has not proposed raising taxes. In fact, he laid out a blueprint for governing that includes dramatic spending cuts to reduce the deficit and pro-growth tax policies that permanently extend the Bush tax cuts, dramatically cut the corporate tax rate to create jobs, and deliver real tax relief to middle-income taxpayers. President Obama has raised taxes 19 times, stunting our economic growth and leading us further down the path toward a European-style entitlement society.”
Here’s how the numbers break down from the Tax Policy Center’s table:
Less than $10,000: $112 increase
$10,000-$20,000: $191 increase
$20,000-$30,000: $126 increase
$30,000-$40,000: $14 increase
$40,000-$50,000: $27 cut
$50,000-$75,000: $249 cut
$100,000-$200,000: $1,146 cut
$200,000-$500,000: $5,195 cut
$500,000-$1 million: $19,853
$1 million or more: $145,568
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So, come on, America! Do what my idiot Florida voters do and keep electing Republicans who are against your own self interests. Let 'um screw you some more. Here in Florida, politicians label themselves "conservative" and "moral" and get elected every time. Never mind that they can't govern and line their own pockets. We have a governor (Rick Scott, Republican) who should be doing jail time and a state representative who made it his mission in life to repeal a law banning drarf tossing. So, get on board, America! Keep electing Republicans (don't forget the Vaseline)!
I have yet to see a Republican tax plan that, under non-partisan scrutiny, didn't turn out to make the rich richer on the backs of everyone else. 9-9-9 anyone? The current tax code sucks but, for all its failings, it's fairer to the workers than anything the Rs have come up with. And meanwhile, the job creators create no jobs and the trickle down is more like an icicle in Antarctica.
Of course it will help the wealthy .... Did anyone expect anything else?
I still want to see what he is hiding in his tax returns.
Romney is just the new updated, streamlined version of George W. Bush. This idea that we must always take care of the wealthy and if we just do that the "overall" economy is sure to improve is nothing more than Reagan revisited and another expostulation of Milton Friedmann's failed "trickle down theory".
Suggestion: Let's start by revamping the whole process: Require that before ANY board decision of ANY major company is acted upon, that board must show just how jobs--American Jobs!--will be improved by that decision. In other words, let's turn the problem on its head and demand that America's number one priority no longer be just the "bottom line" but rather keeping American Labor employed!
Ever since 1981 and the Reagan years, Big Business has been doing exactly the opposite by their "end around" tactic of moving operations to other countries, [third world countries!], a tactic benefitting ONLY to those reaping obscene "slave labor" profits while at the same time causing the impoverishment of those Americans once in the Working Class.
Note: Please show me a town--any town, large or small!--throughout all of America whose empty plants and factories don't illustrate this harsh reality!
Romney is a rich greedy selfish snob who would steal money from a starving mother. Heartless professional politician.
The only thing more frightening than Obama is Ron Paul.
Glad to see you're staying on point, David. Typical Faux News/Chairman Rush response when the facts overwhelm: Spread fear, and ignore the subject.
Well, for those of you old enough to remember "Gomer Pyle"; "Surprise, surprise, surprise!"
I have asked this question on several other threads and have not gotten an answer--can anyone point to any other country with "smaller" government with a more robust economic and social environment than in the U.S? Anyone? Ron?
The answers do not lie within the current governmental system of doing things. The system is too corrupt and comfortable with itself. New policies need to be implemented by other means. It cannot be left up to the current system to police itself.
Should anyone honestly be surprised? If anyone really believes the Tea Party/GOP will go to bat for middle and lower income people, I have some land...
He's the best of the worst and doesn't have a chance. I have no worries that he will ever be president. All Obama has to do is buy a bunch of billboards and fill them with the Bain Cap photo of this idiot with money hanging out of his pockets. That photo was in such bad taste that even other rich people see it and say 'what a bunch of idiots!' But it encapsulates everything that Romney is and contradicts everything he says.
Yeah, no worries!
Ah, the old 'figures don't lie, but liars figure' problem.
Change the assumptions and work the numbers to prove your point.
The Tax Policy Center may be non-partisan, but they don't sound impartial.
Well, what do you know- one of the richest men to ever run for President wants to tax the poor more and keep things easier for the rich....wow, what a huge surprise.
Not important that what you said is untrue. Is it a surprise that you don't want the middle class to pay any income tax and want the productive to pay it all? 47% pay nothing now and Obama wants it to be higher. Look to Europe and see where your thinking will get us. Their middle class is being murdered now and it is good. What goes around always comes around and it will happen to you as well.
Of course they would, here are Mitt Romney's top campaign contributors:
Goldman Sachs $235,275
Citigroup Inc $178,450
Merrill Lynch $176,125
Morgan Stanley $170,350
Lehman Brothers $154,800U
BS AG $125,150
JPMorgan Chase & Co $123,800
Bain & Co $121,475
(He's CEO, Bain & Company)
Marriott International $121,150
Bain Capital $118,550
(He's Co-founder, Bain Capital)
Kirkland & Ellis $111,700
The Villages $110,900
Credit Suisse Group $104,900
Compuware Corp $103,550
Huron Consulting $102,050
PricewaterhouseCoopers $92,250
American Financial Group $87,550
Affiliated Managers Group $82,112
Cerberus Capital Management $79,450
Sun Capital Partners $77,850
WHO DO YOU THINK HE WORKS FOR? LOL!!!
Now make the list for Obama - begin with Warren Buffett, George Soros, Oprah, Pat Stryker, George Kaiser, and the host of millionaires and billionaires. Also point out that Wall Street gave miuch moe to Obama than to McCain.
Disregarding the "host of millionaires and billionaires" -- because we don't know who they are or even if they exist -- Mitt Romney is one of the richest men in America and can almost fund his own campaign with an avalanche of cash.
As for George Soros, if he didn't exist we would have to invent him to serve as a right-wing football. Gee, imagine a liberal billionaire!
Warren Buffett, of course, should be criticized for feeling that it's unjust for his secretary to pay more in income taxes than he does. How dare he?
As for Oprah and the other unknowns -- please.
Maybe they didn't want McCain to win because they knew he'd be a disaster
Great points, Robert Maxwell. In fact George Soros is only playing the role Arman Hammer once filled in the Conservative universe...mythical bogeyman using his business prowess to destroy Capitalism.
Not at all coincidental since the Koch brothers are driving the radical Conservative train. Their father Fred cofounded the John Birch society, where most Conservative fantasies originate.
All those surprised that any Republican plan puts the rich first- raise your hands. Thank you for self-identifying- you just surrendered your reproductive rights by reason of terminal idiocy.
Interesting. Overwhelming majority of millioniares and billionaires are Democrats - especially in Congress. You think the liberals would now want to vote for Romney. Of course the media has all the dumbed down minions thinking otherwise.
I don't see why the uproar over what rom rom says is about? His chances of being the president adds up to a ham sandwhiches chances of surviving a walk through hungry town...... He aint gonna make it!
When the only alternative is Obama, Donald Duck could not lose. Wait until Europe implodes this year and our economy crashes. He will be lucky if even you vote for him then. I might be giving you too much cedit though.
Donald duck would get a lot more peoples votes than the gop continders they have running for president now..... He'd get my vote.....
The fact that any tax policy presented by any of the GOP candidates would do anything but favor the wealthy is just about the biggest piece of non-news I can imagine. Its the same old trickle down BS that got inflicted on a gullible electorate during the Reagan administration. I don't care how many buildings they name after Reagan - he was an unmitigated disaster, the effects are still being felt decades later and will continue to bring this country down until we wake up and realize we were had by his rah-rah pronouncements and lousy economics.
I really wonder how Mitts is going to package his tax proposal and still claim he is working for the 99%. The country was fooled twice by GW Bush. Mittsy's tax plan is no different than GW's. We all know what the GW Bush economic plan did to this country and Mittsy really believes this is the correct path. Perhaps, in the short range for a few of the very richest Americans it works, but as a whole the country will find itself sliding towards depression as when GW ran the show, if they follow Mitts. I really hope people are smarter than what the GOP and Mittsy are trying to feed the populace. It will be a trade off if you wish to follow the GOP. You can hold unto your social ideals and go broke and starve to death. Or You can vote with the 99% of workers, elderly, sick and all those others you do not get fed by a silver spoon.
Romney can't stake out a position and defend it, so now we know he can't add and subtract - so much for his much vaunted business acumen. So far, I'm not impressed and not inclined to vote for him with this kind of silly tax plan.
It's very simple. If you just love what the 1% has done for, or should I say to, this country, then vote for their leader, Mitt Romney.
Romney Plan: tax the poor harder. Give more back to the rich. And we sit here and take it. Shame on us Middle Class for falling into the GOP lie-trap.
When the rich are allowed to keep what is theirs to begin, they are being given nothing. You see, money doesn't originate with the government.
And when the rich pay a lower effective tax rate than the middle class it's an enormous upward transfer of wealth...which is what Conservatives have actually done.
No wealth is transferred as they get nothing in addition to what belonged to them in the first place. Think of it like this: If I had been giving you $10 a week and then started giving you only $9 a week, I would have an additional dollar left in my pocket. However, there was no trasfer of wealth to me as the extra $1 in my pocket didn't come from you. It was mine to begin with.
A false analogy. A certain level of governmental structure is necessary to build and maintain a modern, industrialized society. Republican policies transfer the responsibility for that squarely onto the backs of the middle class, relieving the wealthy elites of responsibility for that task. That turns on its ear over 100 years of common belief and understanding that it's a task that should be placed more progressively on those who have the best ability to shoulder that cost...in part because they've achieved the most benefit.
The result is EXACTLY what we're experiencing now...a middle class struggling to keep from sinking into poverty while the rich hold unprecedented proportions of the nation's wealth.
Yup. That looks fair! (not) The middle class will continue to get peed on, I mean trickled on.
The class war is over and the rich have won. Our government is a true plutocracy and only a true revolution will change that fact. I just wish there was someone with the guts, clout and ability to get one started. We need to restore democracy to our government.