The plan would change the tax structure to have just two brackets, 25 percent and 10 percent, bringing the top rate down from 35 percent. Because that would mean a loss of $4.5 trillion in revenue over the next decade, Ryan says he'd make this plan revenue neutral. That would have to mean closing loopholes. Loopholes that help middle class tax payers. Like the mortgage interest deduction and the tax exclusion on employer health benefits. It would also probably require taxing 401(k) contributions.
The net result: Married couples in that income range would pay an additional $2,700 annually to the Internal Revenue Service, on top of the tax increases that are scheduled to hit every American household when the George W. Bush-era cuts expire at the end of the year.What's that look like? From the report [pdf]:
Households earning more than $1 million a year, meanwhile, could see a net tax cut of about $300,000 annually.
Remember, this is just the tax side of the Ryan plan. The devastating cuts to everything from Pell Grants to Medicaid and Medicare would put even bigger burdens on low-income and middle-class America.
This is the Republican plan for America, led by Paul Ryan and endorsed by Mitt Romney: protect the rich and screw everyone else.
For more discussion, see eXtina's diary.