Romney’s Tax Plan of $5 Trillion
Republican Presidential candidate Mitt Romney has said he will pay for the $5 trillion in tax cuts by not adding anything to the deficit. He said a large amount used to pay for the tax cuts would come by curbing the current tax breaks enjoyed by the rich. Romney has also said he promises not to increase taxes on the country’s middle class.
Joe Biden, the Vice President of the United States said in his debate on Thursday night against Republican vice presidential candidate Paul Ryan that it was mathematically impossible for Romney to accomplish his tax plan.
The plan Romney proposes would give large tax cuts to rich and increase taxes by around $2,000 to people in the middle income earning range who have children said Biden.
However, Romney’s vice presidential running mate said the plan was mathematically possible. Ryan said that the country forgoes nearly $1.1 trillion in tax breaks each year. If those deductions and loopholes were denied to the higher earnings taxpayers so more income is being taxed, then a lowering of the tax rates across the board would be possible.
In reality is much more complicated than Biden, Ryan or even Romney is saying. Romney wants everyone’s tax rates cut by 20%, cut the tax rates for corporations even more, make investing tax free for the people who make less annually than $100,000 and end the Alternative Minimum Tax.
An independent tax center said that Romney’s plan could reduce the revenue by up to $500 billion on average annually or about $5 trillion in a decade.