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Romney's 20% Tax Cut

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    This 20% tax cut for all taxpayers, proffered by Mitt Romney is a total ruse. First of all, it is relatively impossible to calculate the cost of the entire program--suggested by many to be $5 trillion--but one thing about it is unmistakably true: It represents a huge tax cut for the wealthy. Take Mitt Romney for example. He "earned" $21 million last year. And his tax bill on this income was at 13.3%, or $2,793,000. Let's say he is elected and his income stays the same. A 20% reduction on his "last year's tax would amount to $558,600. Thus his new tax bill will be $2,344,400. How many jobs do you think Mitt will create with this extra $558,600?

    If you said zero, I would say you are correct. But Mitt says small business owners need this money to help them create jobs. That is the biggest argument I can think of, so many will get the big tax break and never use it.
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    michaels39301 Wrote: This 20% tax cut for all taxpayers, proffered by Mitt Romney is a total ruse. First of all, it is relatively impossible to calculate the cost of the entire program--suggested by many to be $5 trillion--but one thing about it is unmistakably true: It represents a huge tax cut for the wealthy. Take Mitt Romney for example. He "earned" $21 million last year. And his tax bill on this income was at 13.3%, or $2,793,000. Let's say he is elected and his income stays the same. A 20% reduction on his "last year's tax would amount to $558,600. Thus his new tax bill will be $2,344,400. How many jobs do you think Mitt will create with this extra $558,600?

    If you said zero, I would say you are correct. But Mitt says small business owners need this money to help them create jobs. That is the biggest argument I can think of, so many will get the big tax break and never use it.

    As you have shown, 20% equals hundreds of thousands for the very rich but only hundreds for the 48 percent and middle class. He is going to have to offset this somehow, I believe he is going to eliminate un earned income credits for the 48 percent and take away tax deductions for the middle class as well. Has anyone done the math, if Romney does indeed do this, eliminate the deductions for middle class on down, would it off set the five trillion and more? All the tax returns the 48 percent get now will all be gone, how much is paid out each year in tax returns, state and Federal?
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    The single mom handing the hamburgar out the window of the fast food resturant pays in taxes: both sides of social security (employer factors into total cost of employee) 13.4%, in indiana sales tax on almost everything 7%, state tax with $1,000 deduction in Indiana almost 4%. This puts that hard working women in a 24.4% tax bracket. Much higher than capital gains rate. The fact is the poorest folks in the nation pay higher taxes than the relatively well off. The social security tax is by the way on her entire income. Not just a fraction as with a weathy taxpayer.
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    good reply jassnut, I fully agree.