GOP Candidates’ Tax Plans: What They’ll Do for RI
Monday, January 09, 2012
The tax plans proposed by the GOP Presidential candidates would cost up to $18 trillion over the next ten years, with the wealthiest one percent receiving tax breaks nearly 270 times higher than the middle class, according to a new report issued by Citizens for Tax Justice, a Washington-based liberal think tank.
The group broke down the plans introduced by four major candidates: Former House Speaker Newt Gingrich, Texas Governor Rick Perry, former Massachusetts Governor Mitt Romney and former Pennsylvania Senator Rick Santorum. The group noted that Texas Congressman Ron Paul favors eliminating the income tax altogether in favor of a national sales tax.
Trillions in Cuts
The group found that by 2014:
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTGingrich’s $18.1 trillion tax plan would give the richest one percent of Americans an average tax cut of $391,330, which would be over 190 times as large as the average tax cut of $1,990 that the middle fifth of Americans would receive.
Perry’s $10.5 trillion tax plan would give the richest one percent of Americans an average tax cut of $272,730, which would be over 270 times as large as the average tax cut of $1,000 that the middle fifth of Americans would receive.
Romney’s $6.6 trillion tax plan would give the richest one percent of Americans an average tax cut of $126,450, which would be over 100 times as large as the average tax cut of $1,220 that the middle fifth of Americans would receive.
Santorum’s $9.4 trillion tax plan would give the richest one percent of Americans an average tax cut of $217,500, which would be over 100 times as large as the average tax cut of $2,160 that the middle fifth of Americans would receive.
Rhode Island Breakdown
So what would the candidates’ plans mean for Rhode Island residents?
At 8.6 percent, Gingrich would offer the largest overall tax break to Rhode Islanders, with the overwhelming majority going to those who earn more than $1.1 million per year. His plan would cut their taxes by 23.7 percent while cutting the middle 20 percent (those earning roughly $48,000 per year) by 3.3 percent.
Perry’s plan offers an even smaller cut to the middle 20 percent, according to the report. His plan will cut taxes for middle class Rhode Islanders by just 1.5 percent while the top one percent will receive a 16.7 percent tax break.
Romney, who is currently the favorite, offers the most moderate plan of all the candidates. He plan would cut taxes by 3.8 percent in total, with the richest one percent receiving 7.8 percent in cuts and the middle class receiving 2.2 percent. Romney is the only candidate in the race saying he will cut the wealthiest one percent’s taxes by less than ten percent.
Under Santorum’s plan, middle class Rhode Islanders would receive a 3.7 percent tax break, making his plan the friendliest to residents earning less than $50,000. Santorum’s plan is slightly less generous to those making between $100,000 and $300,000, but he also hopes to offer a 13.7 percent break to those earning more than $1.1 million.
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