Harvard economist Martin Feldstein, former head of the Council of Economic Advisors under Ronald Reagan, recently published an analysis of the Romney tax plan (L.A. Times, Saturday, September 15, 2012).
According to his analysis, along with another from the nonpartisan Tax Policy Center, those earning more than a million dollars a year would see their tax burden cut in half. Those earning $250,00 to one million would see a savings of 20-30%. Those earning $100,000 to 250,000 would see their taxes nearly double. And for those of us earning less than 100k? Well, it depends. Do you own your home? Taxes up. Rural landowner? Taxes down.
Indeed, the most striking aspect of the proposal is this: with the home loan deduction and state and city tax deduction revisions he proposes, “those living in cities and suburbs with high housing costs,” and those who live in states and cities with high taxes, will pay significantly more in Federal tax than they currently do, while those living in rural areas and states with low tax rates will see a net reduction in their Federal tax.
As the Times points out, the former tend to vote Democratic while the latter tend to vote Republican . . .