Report says Romney, Gingrich and Perry tax plans add billions to deficit, favor the rich

CBS/AP

The tax plans put forward by Mitt Romney, Newt Gingrich and Rick Perry would add hundreds of billions of dollars to the U.S. budget deficit, according to a series of analyses from the nonpartisan Tax Policy Center in Washington.

The latest analysis from the group, a joint venture of the Urban Institute and the Brookings Institution think tanks, found the Romney plan would lower federal revenues by $600 billion in 2015.

The finding comes from comparing Romney's proposed tax plan to current law, which mandates the expiration of the Bush-era tax cuts and other tax cuts at the end of the year. When compared to current policy, not current law, the Romney plan would lower federal revenues by $180 billion, the group found.

Among Romney's proposals are to extend the Bush-era tax cuts, repeal the federal estate tax and reduce the corporate income tax rate from 35 to 25 percent.

According to the Tax Policy Center, the tax cuts in Romney's plan go disproportionately to the highest earners. Those making more than $1 million would see an average tax cut of more than $295,000, while those making less than $40,000 would see an average tax cut of less than $1,000.

Those making less than $75,000 per year would see their average federal tax rate decrease by less than 3 percent; those making more than $1 million would see an average decrease of more than 9 percent.

Full CBS News coverage: Mitt Romney

Gingrich's plan, which includes an optional, 15 percent flat tax and a larger cut in the corporate income tax rate, would expand the federal debt even more, according to the Tax Policy Center, reducing revenues by $1.28 trillion in 2015 compared to current law. (That figure is $830 billion when compared to current policy.)

Under Gingrich's plan, if those for whom it makes economic sense choose the flat tax plan and the rest stay in the current system, those making more than $1 million would see an average tax cut of more than $750,000, according to the center - an average cut of more than 24 percent in their federal tax rate. Those making less than $75,000 would see an average reduction of less than five percentage points.

Full CBS News coverage: Newt Gingrich

Perry's plan, which also includes an optional flat tax (his at 20 percent) would lower federal revenues by $995 billion in 2015 compared to current law, according to the Tax Policy Center - a 27 percent cut in total projected revenue. (The figure is $570 billion when compared to current policy.)

The group found Perry's plan also favors high earners, giving those making over $1 million an average tax cut of nearly $650,000 and reducing their average federal tax rate more than 20 percent. Those making less than $75,000 would see their average federal tax rate fall by less than 3 percent.

The Tax Policy Center has not completed analyses for the other candidates still in the race. The candidates whose plans have been studied dispute the findings, arguing that the tax cuts will have a simulative effect and thus increase revenue in ways not acknowledged in the analysis.

Full CBS News coverage: Rick Perry
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[JFK2112]

Sounds fair since i've never been hired by a poor person!

[tryhonesty]

Shocker. Greedy OLD Party RepubliCONs doing what they do best...

[ConSense]

It's hard to cut income taxes for the 51% of the population who don't pay any. Perhaps if you tried living up to your screen name?

[jimbom121]

Given who Romney's economic advisors are, should this surprise anyone? Its Bush redux.

[js2212]

This report is meaningless. The Tax Policy Center is a Liberal Think Tank. There is little chance they would have come out saying anything else. That doesn't make it true. Maybe you people should look over some of the material yourself instead of waiting for articles to come out that match your political bias so you can (falsely) feel vindicated in your beliefs.

[jimbom121]

Really? The center is made up of members of Reagan, Bush Sr and Clinton's economic team.

Can you prove the report wrong?

[kansas1946]

Wow. What a surprise. All Republicans have ever done is increase the debt.

[luadda22]

"those making more than $1 million would see an average tax cut of more than $750,000"???

So it is stating that if I make $1,000,500 a year I will get a tax cut of $750.000??? Wouldn't that mean that I would have to be paying around a 75% tax rate now??? Don't these type of statements seem a little like hyperbole?

[luadda22]

Look up "hyperbole".

[jimbom121]

Did you read the analysis?> If you did you would not be questioning the figure.

[mizRicki]

This argument that somehow if a Republican is put in office that tax cuts will only favor the "rich" is ridiculous. Anyone with any common sense can read right through these Democrats argument. It's time to wise up before this country is totally gone

[jimbom121]

Can you dispute the analyis? Or are you just shooting the messenger?

[mary-miami]

Romney says he can run the country like a business. He lies. A country is not a business. CEO Romney needs the approval of Congress to implement whatever he has in mind. Does he really think that he'll go in there and just do whatever he wants? The GOP has been the party of NO from the start; they haven't cooperated with the Democrat administration at all, so now the GOP thinks that they'll "unite" Congress? Romney is in a fantasy world if he thinks that Democrats will say yes to anything he puts forward, because all Romney and his rightwing cronies want is a two class system of rich and poor. GOP wants slave labor; that's why they want to do away with minimum wages and pay slave wages. The only party that defends the working class is the Democrats. I will vote to re-elect President Obama.

[mizRicki]

It is not the Republicans that have been the party of no, it's the Democrats. The House and sent by last count over 22 bills for the Senate to take up, including a budget. The Senate has refused to take any of these up and have not put forth a budget for over 3 years. I suggest you go to the House website and watch some C-Span to get the truth. This nation is not a nation of "classes", it's just that Democrats find that's a useful claim to make so they can pull the wool over the eyes of those who fail to do their research.

[jimbom121]

Mizricki

None of the 22 bills contain anything about jobs. Try reading them.

[righttospeak]

I have one question, why hasn't the Democrat led Senate not considered the following: •"There are nearly 30 jobs bills passed by the House with support from both Republicans and Democrats that are awaiting action in the Democratic-run Senate," said Rep. Hayworth. "We are hopeful that President Obama, in his State of the Union Address, will express a willingness to work with Republicans to enact all of these jobs bills." You can find the full list here and find more information on our jobs plan on jobs.GOP.gov. [READ MORE]
and •Rep. Hayworth is one of the negotiators working to finish a year-long extension of the payroll tax break. As she noted, "the Republican-led House has passed a full year extension of the payroll tax holiday" but "the Senate, controlled by the president's own party, has not." [READ MORE]
How about the fact that this administration is playing pure politics and want to try and campaign on the fact that the GOP is the party of NO. Such garbage, but so many only listen to the lies of mainstream media and have no clue what is really going on.

[jimbom121]

Because none of them actually contains jobs in the provisions.

[catmomtx]

Because many of them contain things that go totally against Democratic principles.

[ge556]

"I'm SHOCK!!!!"

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How in the world did it become so common to write the present tense in place of the past participle (SHOCKED)? Is this a non-native speaker thing, or an illiterate native speaker thing?