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A new study from the Brooking Institute shows Mitt Romney's tax cut scheme would shift $86 Billion (or $33 Billion if Romney's optimistic assumptions are used) of their tax burden from the wealthiest Americans on to those with lower incomes. It also showed that Romney's proposal is not revenue neutral as Romney has insisted, but would balloon the federal deficit, much the same way the Bush Tax Cuts did.

Romney’s Tax Plan Doesn’t Cover Rate Cut Cost, Study Says

Even if the top U.S. earners are most affected by eliminating tax breaks, there aren’t enough for high-income taxpayers to offset the rate reduction, according to the study. Even if the top U.S. earners are most affected by eliminating tax breaks, there aren’t enough for high-income taxpayers to offset the rate reduction, according to the study. In 2015, the tax burden shift from those with incomes exceeding $200,000 a year to those earning less than that amount would be $86 billion, or at least $33 billion if the rate cuts generate economic growth.

“I don’t think you can do it in a distributionally neutral way, and I don’t think you can do it without really hammering things like mortgage interest,” said Adam Looney, one of the co-authors and a senior fellow at the Brookings Institution in Washington.

“I don’t think you can do it in a distributionally neutral way, and I don’t think you can do it without really hammering things like mortgage interest,” said Adam Looney, one of the co-authors and a senior fellow at the Brookings Institution in Washington.

Of course that is the same message President Obama is hammering home on the campaign trail today.
Obama cited the study during a speech today in Mansfield, Ohio, according to excerpts distributed by his campaign.

“That means the average middle-class family with children would be hit with a tax increase of more than $2,000,” he said. “But here’s the thing -- he’s not asking you to contribute more to pay down the deficit, or to invest in our kids’ education. He’s asking you to pay more so that people like him can get a tax cut.”

I hope the President Obama continues to HAMMER Governor Romney's windfall for the Wealthy as the fiscal fantasy it is, relentlessly!

   

"I never did give anybody hell. I just told the truth and they thought it was hell."
         ~ Harry S. Truman

Re-published because I botched the title so horribly. My bad.

Originally posted to Lefty Coaster on Wed Aug 01, 2012 at 11:58 AM PDT.

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