REALITY: MOURDOCK’S BUDGET WOULD CUT TAXES FOR MILLIONAIRES, WHILE INCREASING TAXES FOR MIDDLE CLASS FAMILIES:
Mourdock’s budget consolidates the 6 current individual income tax brackets into two rates--10% and 25%. This means that the current top statutory income tax rate is reduced 10 percentage points, from 35% to 25%. That is a tax cut of almost 30% for the richest Americans! Mourdock also cuts the top statutory corporate tax rate from 35% to 25%. [CBPP, 2/28/12]
Mourdock’s budget, then, will result in the tax increases for middle class families. A typical household earning between $50,000 and $100,000 and filing jointly, under Mourdock’s plan, will face a tax increase of $1,358 at the 10% bracket. If that family is placed in the 25% bracket, their tax increase more than doubles to $2,938. A family earning between $100,000 and $200,000, under Mourdock’s plan, faces a tax increase of $2,681. [JEC, 6/20/12]
By contrast, Mourdock’s budget will give tax cuts to the richest families. A household earning between $500,000 and $1 million will see their tax burden decline by $37,887. A typical household making more than $1 million and filing jointly will see a tax reduction of $286,543 under Mourdock’s budget. [JEC, 6/20/12]
The richest millionaires and billionaires would get a windfall tax cut under Mourdock’s budget of almost $1.18 million each. [JEC, 6/20/12]
REALITY: MOURDOCK’S TAX PLAN WOULD IMPOSE A NATIONAL SALES TAX:
Mourdock supports a radical consumption tax that would hurt middle class families and retirees.
- Under Mourdock’s national sales tax plan taxes would increase by more than $3,000 for taxpayers in the lower 80% of tax brackets. While raising taxes for most Americans, it would cut taxes for the wealthiest. For the wealthiest 1% of taxpayers, Mourdock’s national sales tax would result in a $225,000 tax cut.
- Retirees have paid taxes on their wages during their entire working lives, but if Mourdock’s tax plan were implemented, retirees would have to pay higher taxes on products that they want to buy with their accumulated savings.
- Mourdock’s national sales tax plan also eliminates our home mortgage deduction that saves Hoosiers thousands of dollars each year.
- This tax applies to everything: Cars, homes, groceries, dinners, movies, gas, office supplies, tools, etc. [Institute on Taxation and Economic Policy, “The Effects of Replacing Most Federal Taxes with a National Sales Tax A State-by-State Distributional Analysis,” September 2004; PolitiFact.com, 1/23/08; Factcheck.org, “Unspinning the Fair Tax,” May 31, 2007]