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In tonight's debate, Gov Romney promised that tax rates would come down for ALL
and that the "middle class" would NOT pay higher taxes
and that the top 5% income earners in this country would NOT pay lower taxes.
He did not commit to closing any tax loopholes.
He suggested that this might be done by capping the amount of deductions, then pulled a few different figures out of the air.
One that I recall was $25,000. He suggested you could choose whatever deductions you wanted, e.g., education, mortgage interest, taxes, charitable donations, but the most you could take would be capped. Part of his rationale was that this lowered tax rate would protect small business owners and encourage them to create more jobs.
Q1. - How is the "middle class" defined?
Q2. - How many Americans fall between the category of "middle class" and the top 5%? and OMG...he made them NO promises...wouldn't want to be in that group!
Q3. - If "small business" owners have their deductions capped at $25,000, won't that severely curtail their ability to take deductions from their business income resulting in a higher tax burden on them overall?