A new report from the nonpartisan Tax Policy Center found that Mitt Romney’s plan to cut taxes for the wealthy will inevitably shift the tax burden to middle-class families. Watch President Obama lay out the stark contrast between Romney’s plan and his own plan to strengthen economic security for the middle class, and then share this video with your friends.
When it comes to middle-class taxes, we knew Mitt Romney’s plan was bad. But now, according to a report from the nonpartisan Tax Policy Center, backed by a report in The Wall Street Journal, we know just how bad it is: If Romney wants to pay for his budget-busting $5 trillion tax cuts for millionaires and billionaires, he’ll have to raise taxes on millions of middle-class families.
To pay for his reckless plan, Romney would have to slash some of the most important tax benefits for the middle class—benefits like health insurance premiums covered by their employer, interest on home mortgages, donations to charity, and children and child care. Romney would also have to raise taxes on the middle class; families with children who make less than $200,000 would see their taxes spike by an average of $2,000.
To put it in perspective: To pay for a single $250,00 tax cut for someone like Romney who makes more than $3 million a year, 125 middle-class families would have to pay $2,000 more in taxes every year.
This is a formula we’ve tried before—and it crashed our economy and punished the middle class. Romney’s plan won’t create jobs or grow our economy in the long run, and it’s also just fundamentally unfair. As President Obama noted in a speech today, “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.”
President Obama has a very different plan. It’s a plan to prevent a tax hike on the middle class, enact spending cuts and reforms, and ask the wealthiest to pay their fair share. He’s already cut taxes by $3,600 for a typical family, and he’s calling on Congress to stop a tax increase on 98 percent of Americans.
Mitt Romney wants to raise your taxes. President Obama wants to cut them.
This is the choice we face.
Middle-class Americans are beginning to learn what Mitt Romney’s tax plan would mean for them. The Wall Street Journal reports:
“A new study released Wednesday suggests that Mitt Romney’s tax plan would benefit the rich and hurt the poor and middle class, no matter how current blanks in the plan are filled in.
“Mr. Romney’s ambitious plan would extend current Bush-era tax rates, plus cut rates another 20 percent, eliminate investment taxes altogether for households making under $200,000, and abolish the dreaded alternative minimum tax. But it provides few details about what tax breaks would be pared to offset the budget hit.
“The study basically concludes that eliminating tax breaks to offset the impact of Mr. Romney’s rate cuts would inevitably hurt the middle class” The Wall Street Journal report says.
Want more details about Governor Romney’s plan? Check out the full report.
This summer, Americans across the country are receiving a new set of benefits from the Affordable Care Act.
One of the biggest changes has to do with your health care premiums.
Because of the new health care law, insurance providers are now required to devote at least 80 percent of the premiums you pay to your health care — not to advertising, or administrative costs, or salaries for their CEOs.
Providers can make sure they meet that standard by lowering your rates or improving your care, but right now, companies that aren’t meeting the standard are actually providing rebates to their customers. Nearly 13 million Americans will receive more than $1 billion from insurance companies this summer.
Back in 2010, Nancy-Ann DeParle, President Obama’s Deputy Chief of Staff for Policy, filmed a White Board to help explain the reform and why it matters.