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View Diary: Mitt Romney reveals his magical tax plan math. And it looks just like Bush's. (152 comments)

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  •  If his rate doesn't change then how can (0+ / 0-)

    his taxes go up? Romney's earned income rate, albeit a small part of his total income, will go down by 20% and the loss of deductions will render it defecit neutral according to Romney's campaign. Where is the increase in taxes?

    •  As stated in my comment (0+ / 0-)
      his taxes would go up significantly under his proposal because of the loss of deductions,
      In addition to state income taxes and property taxes, he also had very large charity deductions.  Deductions reduce taxes due not only on ordinary income.

      The most important way to protect the environment is not to have more than one child.

      by nextstep on Wed Oct 10, 2012 at 10:58:13 AM PDT

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      •  Yes, I understand that removing those deductions (0+ / 0-)

        would raise his burden but he also would reduce his rate by 20%, offsetting any increases by his own assertion. He has stressed over and over how his plan would be defecit neutral with no increase in revenue. If his defecit exploding plan is going to be magically balanced with the closing of loopholes and LOWERING the tax rate across the board it's odd that he hasn't said exactly what loopholes will close...rendering any calculations about how it would affect his rate wildly speculative. His plan relies heavily on an unrealistic expectation of growth to make up the difference in lost revenue. It does conveniently protect the wealthy if there is another Republican Economic crash by giving them nice low rates and another excuse to bring down the austerity hammer on the lower classes. As far as raising his tax onus significantly, I seriously doubt that and repeating what you already posted hardly proves it.

        •  The Romney tax proposal does not reduce rates (1+ / 0-)
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          VClib

          on capital gains, dividends or interest for income over $200k. So the average reduction in marginal rates paid by Romney would be far less than a 20% reduction.  

          At this point, it looks like all the various current itemized deductions will be retained, but a fixed dollar cap on total deductions would apply.  Based upon what has been said and written, this cap amount would be somewhere between $17k and 45k.  The idea of a total cap is very powerful, as it puts very strong limits on gaming the tax code by the wealthy. The current tax code already has weaker forms of deduction caps thought the AMT and limits on charitable deductions.  

          As far as being revenue neutral, it depends upon to what extent the base is broadened in a Congressional deal and how high is the deduction cap.  The base could be broadened further by excluding the foreign tax credit, including municipal bond interest in income, treating carried interest as ordinary income, etc..limitation on deferred income, etc..

          The most important way to protect the environment is not to have more than one child.

          by nextstep on Wed Oct 10, 2012 at 06:43:54 PM PDT

          [ Parent ]

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