Fact #85: Mitt Romney was right
AMES, IA – Mitt Romney was right. Here’s what he wrote in his book about the Fair Tax, the tax plan that Congressman King says he has supported since 1980:
“One challenge with the fair tax is that the very rich would see their taxes go down – a lot. If Bill Gates makes about a billion dollars a year on his investments, for example, his current taxes would be at least $200 million. Let’s say he spends $50 million on himself and his family every year – which is a huge sum and I doubt he spends that much, but let’s use it for illustration: Under the fair tax, Bill Gates would pay ‘only’ about $17 million in taxes – his tax bill would thus drop from $200 million to $17 million. The Wall Street Journal found that the enormous amount saved by the wealthiest under the fair tax would be made up by a higher tax burden on the middle class. This is not an outcome that will or should gain traction with the American public.” – Mitt Romney, No Apology: The Case for American Greatness, pg. 130
There you have it. Even the Republican Party’s presumptive presidential nominee thinks Congressman King’s tax plan shouldn’t gain traction with the American people. We’ve been saying the same thing, so have independent groups:
“Compared with the current system, the Fair Tax would be a boon to the highest earners, who spend a relatively low share of their income each year and would no longer have to pay taxes on capital gains.” [Businessweek, 4/7/11]
In an analysis of the plan, FactCheck.org wrote, “It will collect more money from those earning between $15,000 and $200,000 per year and less from those earning more than $200,000 per year.” [FactCheck.org, 5/31/07]
The Fair Tax is unacceptable. Congressman King should stand up for the middle class, not try to increase their taxes.