The Romney-Ryan budget explained: tax reform
If partisan media spin has you wondering what's really in the Romney-Ryan budget and how it may affect you, you're not alone.
Below is a simple break down that provides the facts, and only the facts.
- Spending. Discretionary spending (FBI, FDA, education, health care, veterans, NASA, etc.) will be cut by 50%
- Taxes. Two brackets created: 10% and 25%, corporate tax cut from 35% to 25%, alternate minimum tax repealed
- Medicare. Abolished in current form. Seniors get vouchers to buy private insurance if they can
- Medicaid. This health-care program for the poor would be turned into block grants to states to use as they wished
- Food. Food stamps would be turned into block grants to states. Price supports for farmers would be reduced.
Romney-Ryan tax reform will affect all income levels as follows:
People earning between $50,000 and $100,000 would see their taxes go up by about $1,358 per year.
Incomes between $100,000 and $200,000 would pay an additional $2,681 a year in income taxes.
Those with incomes above $1 million would get a tax cut of approximately $300,000.
Income from dividends, capital gains, and interest, will not be taxed at all.