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According to analysis released on Wednesday by a nonpartisan group, the proposal from Mitt Romney to slash taxes of individual income by 20 percent would help to increase the income of the wealthiest taxpayers in the country. The analysis was released in a report by the Tax Policy Center and it discovered that tax cuts proposed by Romney would increase the post-tax income by an average of 4.1 percent for anyone who earns more than $1 million per year. For people who earn less than $200,000 per year, it would reduce the after-tax income by 1.2 percent.
The study said that the 20 percent tax cut’s value would be more than the gains from tax breaks created by Romney, which would cause those people to have the greatest income gain.
“We add up how much people get from the tax cuts and then add up how much can be potentially be raised,” Adam Looney said. Looney is one of the study’s authors and an economist. Analysts said that two-thirds of the $1.1 trillion in revenue the government foregoes each year from tax breaks will have to be curbed in order to fund the tax cut Romney has proposed. The tax cuts proposed by Romney include credits for middle and low income families, mortgage interest deductions and a break for employer-provided health insurance. The proposal would also include breaks on investment income and eliminating taxes imposed on estates that are passed down to heirs.
