Romney Helping the Middle Class with Less Tax

On September 4, 2012 when ABC said the Democrats are saying their budget plan will crush the middle class, Ryan said it’s not true, what we are proposing is to reduce people’s tax rate by 20% and we’ll do it by closing loopholes. Come on, reducing tax reduces revenue so to balance the budget they’d have to shut down public schools, eliminate entitlements and more. Also closing loopholes of the average American will increase not lower their tax which is what experts have said could be an additional $2,000. Romney/Ryan to get votes continually confuse people with their double talk. 

In Romney’s CBS 60 Minutes interview, September 23, for the first time we hear something almost specific about his plan for reducing taxes. Scott Pelley said “What would the individual federal income tax rates be?” Romney responded “Well, they would be the current rates less 20 percent. So the top rate, for instance, would go from 35 to 28. Middle rates would come down by 20 percent as well. All the rates come down. But unless people think there's going to be a huge reduction in the taxes they owe, that's really not the case. Because we're also going to limit deductions and exemptions, particularly for people at the high end. Because I want to keep the current progressivity in the code. There should be no tax reduction for high income people. What I would like to do is to get a tax reduction for middle income families by eliminating the tax for middle income families on interest, dividends, and capital gains”. Pelley, “The tax rate for everyone in your plan would go down.” Romney, “That's right. Middle income people will probably see a little break, because there'll be no tax on their savings”. This is ridiculous to me. First the top rate going from 35% to 28% is 7% - not 20%. Second, he gave no specific value for the average American except to say they’d not pay taxes on their savings while investors get to keep a low rate on their dividends and capital gains. Middle and lower income people are scrapping to get by so I don’t think many have savings accounts and if they do I bet the value is not equal to the amounts in dividend and capital gain accounts.