Hypocrites in Washington

[zimmy]

Originally Posted by justplugit

The WSJ broke the Ryan Plan down like this:

Spending-- 40.1 Trillion vs Obama 46.9 Trillion over 10 years

Tax Revenue--37 Trillion vs 40 Trillion

Lower tax rates and tax brackets

Medicare will stay the same for those over 55 and an additional
Choice-Medicare Type Program privatly run with additional Medicare type
plan to offer additional assistance for the poor.

Medicade made into a Federal Block Grant Program freeing States to tailor their
Prorgrams.

Individual Taxes- two tax rates %10 and %25 and includes removing loop holes

Corporate Taxes- lower top corporation from %35 to %25 while gutting exemptions

Reduce Defecit to %3 of GDP by 2014. Currently is %7.8 of GDP

Tax revenues would lag behind spending during a 10 year window.

Two critical points: to balance the budget and reduce the deficit, all deductions and exemptions would go away, so those who are in that 10% bracket get a substantial tax raise; taxes on interest, dividends and long term capital gains would reduce Romney's taxes and those with income primarily from investments to between 0-1%.

So the plan is to substantially raise taxes on people with moderate incomes (roughly $200,000 and less) and probably those in the next group who have relatively limited investment income, but end taxes for those very wealthy who get most of their income from dividends and capital gains.

Also, for many corporations it would be an enormous tax increase, if exemptions are gutted. The effective tax rate is only 27.1%, so it would be a small decrease in the effective tax rate. I agree with this part of his plan, but for those who are of the limited taxation, get government out of business crowd, this part of the plan does not actual lower taxes by 10%. It is a tax cut for some businesses and an enormous tax increase for others.