Time to Repeal the Romney Rule
You’ve heard of the Buffett Rule proposed by President Obama — the simple idea that no millionaire should be able to use tax loopholes to cheat the system and pay a lower tax rate than hardworking middle class Americans. All President Obama is proposing is that millionaires and billionaires pay at least the same rate as middle class Americans.
The Romney Rule is the opposite — the fact that Mitt Romney thinks millionaires like him who make money off their wealth are entitled to pay a lower tax rate than middle class Americans who earn their money from wages.
In response to criticism he faced today over the Romney Rule, Romney’s Communications Director Gail Gitcho told Politico:
Mitt Romney has a tax plan that cuts taxes for the middle class.
The only problem with that? It’s just not really true.
ThinkProgress’ Pat Garofalo took a closer look at Romney’s so-called middle class tax cut and found that it just doesn’t add up:
Romney may think he focused his tax cut on the middle-class, but according to a ThinkProgress analysis of Tax Policy Center data, nearly three-fourths of households that make $200,000 or less annually would get literally nothing from Romney’s tax cut, due to the simple fact that most of those households have no capital gains income
To be exact, 73.9 percent of the households upon which Romney “focused” his tax cut will see zero benefit from it. The table below shows how few households in each income bracket would be affected by Romney’s cut:
For families making between $40,000 and $50,000 annually, Romney’s tax cut comes out to a whopping $216 per year.
Meanwhile, the payroll tax cut enacted by the Obama administration in 2011, which Romney derided as a “temporary little Band-Aid,” gave those same households a tax cut of $800 to $1,000.
Fast Facts About Mitt Romney & Taxes
- Mitt Romney is worth up to $250 million, according to Personal Financial Disclosure forms filed with the Federal Election Commission.
- Mitt Romney pays an effective tax rate of just 14 percent, according to a recent report in TIME magazine.
- A typical middle class taxpayer making $60,000 in wages would pay an effective tax rate of 29.9 percent in 2011, according to figures from Citizens for Tax Justice.
- Nearly 100,000 millionaires pay lower tax rates than middle class Americans, according to a recent report from the Congressional Research Service.
- Despite running for elective office for more than two decades, Mitt Romney has never released his tax returns.
- In 1994, when Mitt Romney was running against the late Sen. Ted Kennedy, Romney called on Kennedy to release his tax returns to prove he had “nothing to hide.”
- During his 2002 gubernatorial campaign, Mitt Romney called on his opponent’s husband to release his tax returns. Romney’s opponent released her tax returns, but Romney refused to release his own tax returns.
IN ONE PICTURE: Mitt Romney thinks he and his millionaire buddies should be able to use tax loopholes to cheat the system and pay a lower tax rate than hardworking middle class Americans.
Evening Brief: Important Stories That You May Have Missed
How the NRA plans to bring countless numbers of concealed firearms to a community near you.
Former Libyan leader Muammar Qaddafi left behind a trove of files of photographs, but the greatest insights into Qaddafi’s personality and rise to power might be found in the Qaddafi family’s private photo albums.
Republican presidential frontrunner Herman Cain told CNN’s Piers Morgan that race is different than sexual orientation because it “doesn’t wash off.”
Rick Santorum (R-PA) was quick to defend Ronald Reagan’s willingness to exchange weapons for hostages with Iran but, a day later, in a Fox New appearance, Santorum contradicted himself, saying, “[The Iranian government] will not and cannot be negotiated with. They are radical Islamists. They are theocrats.”
In defense of Rachel Maddow.
The regulation that could determine the future of health care.
Climate change didn’t “go;” it was pushed.
Other recent Progress Reports
Oct 19, 2011: The 99 Percent Effect On The Media
How the 99 Percent Are Changing America One News Story at a Time As ThinkProgress cataloged, the corporate media sought early on to attack the Occupy Wall Street protest and the 99 Percent Movement as a whole. Right-wing outlets like Fox News and The Daily Caller continue to do so, but the 99 Percent Movement appears to [...]
Oct 18, 2011: Will The GOP Say No To 400,000 Jobs?
Who Will the GOP Put First: Teachers & First Responders OR Millionaires & Billionaires? Last week, the Senate GOP voted down the president’s jobs plan — and thousands of jobs in each and every state across the country. But President Obama isn’t taking no for an answer and is breaking his jobs plan into pieces [...]
Oct 17, 2011: A Closer Look At Alabama’s Disastrous Immigration Law
The fact that Alabama has HB 56, the nation’s harshest anti-immigrant law on the books, has become a point of pride of some Alabama Republicans. The bill’s sponsor, state Sen. Scott Beason (R), has bragged about its success even as farmers described to him the crops they were losing without enough workers to pick them. [...]
Oct 14, 2011: A Texas-Sized Giveaway To Big Oil
Rick Perry’s Jobs Oil Above All Plan Today, Texas Gov. Rick Perry, who has received more than $11 MILLION in campaign contributions from Big Oil, unveiled a series of giveaways to Big Oil that he packaged together as his “jobs plan.” Here’s the rundown. Rick Perry’s Top 10 Giveaways to Big Oil ThinkProgress’ Judd Legum [...]