GOP Presidential candidate Mitt Romney has been touting his tax plan as focused on “the people in the middle, the hard-working Americans,” but on Fox News Sunday today, he acknowledged that “it’s not a huge tax cut” for the middle class:
HOST: But the argument is, middle class people can’t afford, they don’t have enough money to have a lot of capital gains and dividends.
ROMNEY: Look, I recognize that it’s not a huge tax cut. It is a tax reduction.
As ThinkProgress has noted, Romney’s claim that his tax plan cuts taxes for the middle class has little basis in reality. Our analysis found that the vast majority of middle-class households would get no benefit from Romney’s tax plan, since it is based on a capital gains tax cut when most middle-class families have no capital gains. Nearly three-fourths of households that make $200,000 or less annually would get literally nothing from Romney’s tax cut, due to the simple fact that most of those households have zero capital gains income. For families making between $40,000 and $50,000 annually, Romney’s tax cut comes out to a whopping $216 per year.
Instead, Romney’s tax cuts would disproportionately benefit the wealthy and corporations.