Thursday, January 19, 2012

Santorum’s Tax Plan Would Increase The Deficit By $1.3 Trillion

Santorum’s Tax Plan Would Increase The Deficit By $1.3 Trillion:

Rick Santorum, who following a recount may very well have been the winner of the Iowa caucus, has released a tax plan that, like those of all his competitors, would overwhelmingly aid the wealthy while doing next to nothing for the middle class. In fact, 40 percent of the benefit of his plan would go to the richest 1 percent of the country.

Not only that, but as the Tax Policy Center found, Santorum’s plan would blow a $1.3 trillion hole in the budget, gutting federal revenue by about 40 percent:

The Santorum plan would reduce federal tax revenues substantially. TPC estimates that on a static basis, the Santorum plan would lower federal tax liability by about $1.3 trillion in calendar year 2015 compared with current law, roughly a 40 percent cut in total projected revenue. Relative to a current policy baseline, the reduction in liability would be about $900 billion in calendar year 2015.

“I was surprised at how large the revenue losses were,” said TPC’s Roberton Williams. “It’s a lot of rate cuts and doesn’t get rid of anything to help pay for that.”

The average tax cut for a millionaire under Santorum’s plan would be nearly $448,000. For the richest 0.1 percent of the country, the tax cut would be worth $1.3 million annually. Santorum often complains that the deficit “is exploding,” but his plan would do nothing to turn around the nation’s budget woes, instead spending trillions to cut taxes for those at the very top of the income scale.

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