President Barack Obama’s presidential campaign slammed two of his opponents over their tax plans — saying they would result in tax cuts for the wealthy, at the expense of the middle class.
Campaign policy director James Kvaal writes in a memo that the plans introduced by Texas Gov. Rick Perry and former Massachusetts Gov. Mitt Romney “are likely to be costly, driving up the deficit at a time of historic fiscal challenges.”
“Both the Romney and Perry economic plans embrace a far-right vision for our tax code,” he writes. “They share elements with plans offered by congressional Republicans, which independent economists believe would fail to accelerate job creation now. Both plans would cut taxes on wealth and investment income, shifting the tax burden onto work and wages. Both plans are likely to be costly, driving up the deﬁcit at a time of historic fiscal challenges. And under both plans, the most fortunate Americans would pay less while the middle class would pay a higher share.”
The memo specifically targets Perry’s just-announced 20-20 plan, which includes an optional flat tax, saying it disproportionately helps the wealthy.
“Many flat tax proposals also eliminate all taxation on capital gains and other investment income so that the wealthiest, who generate much of their income from investments, rather than work, see huge gains,” Kvaal adds.
Romney and Perry undoubtedly pose the most significant threats to Obama in the general election, but their tax plans are providing his campaign with easy fodder.
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