ROMNEY SAID THIS WEEK HE LOVES THE FLAT TAX – JUST NOT THOSE THAT GIVE BREAKS TO WEALTHY AMERICANS
Romney Said He Loved The Flat Tax. At a town hall in Nashua, New Hampshire, Romney said, “I love a flat tax.” [Romney Town Hall, 8/8/11]
But Then, Romney Said He Didn’t Like Flat Taxes That Give Huge Breaks To Wealthy Americans. At a town hall in Nashua, New Hampshire, Romney said, “So there are some tax proposals that are called a flat tax that I don’t agree with because they end up being huge breaks for the highest income Americans, of which I happened to have been one, still am. And I’m not looking for a tax break for me.” [Romney Town Hall, 8/8/11]
A Flat Tax, By Definition, Gives Huge Tax Break To Wealthy Americans Because It Will Lower Their Income Tax Rate And End The Progressive Income Tax.According to The Economist, “A flat tax on personal incomes combines a threshold (that is, an exempt amount) with a single rate of tax on all income above it.” And, according to theSan Francisco Chronicle, “A 17 percent or 19 percent flat tax certainly would be a massive tax cut for high-income people,” said Eric Toder, a senior fellow at the nonpartisan Tax Policy Center in Washington, in 2007.” [The Economist, 4/14/05; San Francisco Chronicle, 4/11/07]
Flat Tax Would Impose Higher Rates On Most Workers. An Economic Policy Institute brief on the flat tax found that: “But under the flat tax many workers would face higher marginal rates, not lower ones. Currently the lowest wage workers pay no income tax but bear a payroll tax burden of 15.3% (employer plus employee). When they earn enough to move into the first income tax bracket– 15%–their marginal rate rises to 30.3%. A flat tax rate will inevitably be higher than 15%; it could easily be as high as 24%, thereby boosting the tax rate of these workers to 39.3%.” [Economic Policy Institute Issue Brief, “Falling Flat: The Dubious Case For the Flat Tax,” 1/17/96]
…ROMNEY USED TO CALL IT A GIMMICK
1996: Romney Ran $50,000 In Newspaper Ads Against The Flat Tax Calling It “A Bad Idea For The Republican Party.” “In Massachusetts, Republican millionaire Mitt Romney, who ran unsuccessfully for the U.S. Senate two years ago, said he was spending $ 50,000 on newspaper ads arguing Forbes’ plan would primarily benefit the rich. Romney, who has not endorsed a GOP candidate, said the flat tax ‘is a bad idea for the Republican Party.’” [AP, 1/21/96]
Romney: Forbes’ Flat Tax Proposal Is “A Zero Tax On The Wealthy And A 17 Percent Tax On Working Americans.” “Plunging into the heated debate over taxes among Republican presidential contenders, former US Senate candidate Mitt Romney today is running a series of full-page newspaper ads attacking the 17 percent flat tax proposed by candidate Steve Forbes. Romney, the Republican millionaire who ran unsuccessfully against US Sen. Edward M. Kennedy two years ago, said the ads are aimed at voters taking part in the Iowa caucuses and the New Hampshire primary to convince them that Forbes’ plan will unfairly favor the rich. ‘The problem with the Forbes flat tax is that it isn’t flat at all – it’s a zero tax on the wealthy and a 17 percent tax on working Americans,’ Romney said yesterday. ‘I’m hoping that by running these ads voters will realize the Forbes flat tax is a gimmick, a phony, and not what it pretends to be.’” [Boston Globe, 1/21/96]
Romney Called The Flat Tax “Unfair” And A “Tax Cut For Fat Cats.” According to the Club for Growth, in 1996, Romney “ran a series of newspaper ads in Boston, New Hampshire, and Iowa denouncing the 17% flat tax proposed by then presidential candidate Steve Forbes as a ‘tax cut for fat cats.’ In 2007, Romney continued to oppose the flat tax with harsh language, calling the tax ‘unfair.’” [Club for Growth, 2012 Presidential White Paper #5, 6/7/11 ]
…BUT BEFORE THAT, HE ALSO LIKED IT
1994: Romney Was For The “Concept Of A Flat Tax.” “He’s for the ‘concept of a flat tax’ but not Rep. Dick Armey’s bill, which he fears would raise the deficit. This is in keeping with fiscal responsibility a la Bob Dole, back high taxes to cover Democratic profligacy.” [Boston Herald, 10/20/94]
1994: Romney Called The Flat Tax “A Good Idea.” “Asked about taxes, Romney said that, although he considered Lakian’s call for a flat 17 percent federal income tax ‘a good idea’ he would not endorse it until he could determine whether it would add to the deficit.” [Boston Globe, 8/27/94]
Romney “Offered His Support For The Concept Of A 17 Percent Flat Tax.” “Romney offered his support for the concept of the 17 percent flat tax, but said Lakian’s plan was flawed because it would give breaks to the rich. Romney, a self-made millionaire, said his tax bill would be reduced 80 percent under the flat tax.” [Boston Globe, 9/7/94]
Published: Aug 8, 2011