Posted by tecwrg on 10/12/2012 2:25:00 PM (view original):
My understanding of Romney's revenue neutral tax cut is that it's not shifting who pays what. It's lowering the effective tax rate while elminating deductions, i.e. simplifying the tax code. So the wealthy would be paying roughly the same, they'd just be paying a lower rate on a larger taxable income.
I don't know if that's true. This non-partisan study ( www.brookings.edu/research/opinions/2012/10/08-romney-tax-debate-gale
) points out that based on the details Romney has given - reducing overall rates by 20 percent; repealing estate taxes, the AMT, and capital income taxes - taxes are reduced for people making over $200,000. The plan doesn't just simplify the way they pay the same amount.
If you reduce the taxes for people making over $200,000 a year and keep your plan revenue neutral, there's no way not to increase taxes on people making less than $200,000.