Obama's Favorite Economic Analysis Group Claims His Budget Raises Taxes on 1 in 4 Americans
11:08 AM, Aug 2, 2012 • By DANIEL HALPER
President Obama yesterday cited an "independent, non-partisan" economic study by the Tax Policy Center. The president used the group to buttress his argument against Republican presidential candidate Mitt Romney's tax plan. (This, despite the fact that a former staffer for President Obama helped produce the "independent, non-partisan" analysis.)
Nevertheless, since President Obama is relying heavily on the analysis performed by this group, it's worth considering what the Tax Policy Center has to say about Obama's own economic plan.
"President Barack Obama’s 2013 budget plan would raise taxes for 27 percent of U.S. households in 2013, far more than the administration estimates, according to a nonpartisan study," Bloomberg reported in March. "The study released today comes from the Tax Policy Center, a research group in Washington that analyzes proposals from presidential candidates in both parties. Obama focuses the tax increases in his 2013 budget on corporations and the top 2 percent of individual taxpayers. The result in the center’s study stems from the fact that taxpayers in all income brackets own parts of corporations."
The Tax Policy Center analysis, which Obama relies on to critique Romney's plan, plainly contradicts what President Obama told Ohioans at yesterday's campaign event.
"I've got a different plan for America than Mr. Romney's," Obama said yesterday. "Four years ago, I promised to cut middle-class taxes, and that’s exactly what I’ve done -- by a total of about $3,600 for the typical family. Now I want to keep income taxes exactly where they are on the first $250,000 of everybody’s income. So if your family makes under $250,000 a year -- which is 98 percent of American families -- you won’t see your income taxes increase by a single dime next year."
But, according to the Tax Policy Center, under President Obama's budget, taxes would be raised on households earning less than $10,000 (approximately 8.6 percent of those households would see taxes increased under Obama's plan), between $10,000 and $20,000 (approximately 11.9 percent), between $20,000 and $30,000 (approximately 18.1 percent), between $30,000 and $40,000 (approximately 22.2 percent), between $40,000 and $50,000 (approximately 23.6 percent), between $50,000 and $75,000 (approximately 31.6 percent), between $75,000 and $100,000 (approximately 38.7 percent), and between $100,000 and $200,000 (between 51.4 percent).
The Obama campaign, and the president himself, is expected to continue to rely on the findings of the Tax Policy Center to criticize Romney. But, if that's going to continue, at a certain point President Obama and his campaign will have to address why they are picking and choosing only the group's analysis that fits their narrative.