Romney Favors the Middle Class???

Romney has been claiming that his tax policies favor the middle class.  Let’s look at what happens with his 20% across the board tax cuts and see who really benefits.  This is looking at a single person, but the impact on all filers will be similar.  This also looks at the rates effective on January 1^st after the expiration of the Bush tax cuts.

Tax Rate	Single	Romney's	Savings per $1000	Bracket Savings
10%	Up to $8,750	8.00%	$20.00	$175.00
15%	$8,751 – $35,500	12.00%	$30.00	$802.47
25%	$35,501 – $86,000	20.00%	$50.00	$2,524.95
28%	$86,001 – $179,400	22.40%	$56.00	$5,230.34
33%	$179,401 – $199,350	26.40%	$66.00	$1,316.63
36%	$199,351 – $390,050	28.80%	$72.00	$13,730.33
39.60%	Over $390,050	31.68%	$79.20
Top Bracket Savings before being taxed at the highest rate				$23,779.73

Basically, a person in the lowest tax bracket will save $20.00 per #1000 of Adjusted Gross Income while those in the top tax bracket will save $79.20 per $1000 of AGI, 3.96 times more.  An individual in the top tax bracket will actually have his or her taxes reduced by $23,779.73 before his or her AGI reaches the level of the highest tax percentage.  An individual with an Adjusted Gross Income of $1,000,000 would see taxes reduced by $72,336,89.  In other words, many people in the top income tax brackets would have tax savings that are greater than the income of more than 50% of all American tax payers.  Somehow, that seems to fail the test of favoring middle class.  As far as penalizing the top tax payers by not giving them a reduction, as can be seen in the example above, those in the top tax bracket will save $23,779.73 in taxes before paying a single penny of tax on income above $390,050.  Somehow, that seems like a tax cut for everyone without having to give those at the top even more.