Paul Ryan’s tax planin 7 simple slides

As passed by the US House of Representatives

Tax Fairness WI -- taxfairnesswi.org

These are the US income tax brackets

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less income More incomeTax Fairness WI -- taxfairnesswi.org

Ryan’s budget collapses 6 brackets into 2(It doesn’t say what $ level the brackets are)

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less income More incomeTax Fairness WI -- taxfairnesswi.org

Compare the two

0%

5%

10%

15%

20%

25%

30%

35%

40%

Current brackets

Ryan’s brackets

Tax Fairness WI -- taxfairnesswi.org

In Ryan’s plan, three brackets at the top pay less; one near the bottom pays less

0%

5%

10%

15%

20%

25%

30%

35%

40%

Tax Fairness WI -- taxfairnesswi.org

That means much less revenue is collected, and big breaks for the wealthiest

So he promises to close loopholes and exemptions that mainly the rich use

Paul Ryan, interviewed by Bob Schieffer of CBS for 60 Minutes, Aug. 12, 2012

“Take away the tax shelters that are uniquely enjoyed by people in top tax brackets so they can’t shelter as much money from taxation and so we can lower tax rates for everybody to make America more competitive.”

Tax Fairness WI -- taxfairnesswi.org

But it’s an empty promise:The Ryan budget eliminates no loopholes

and he won’t offer any details

Question by Brit Hume, Fox News, Aug. 14, 2012:

What loopholes and deductions would be eliminated?

Answer by Paul Ryan:

“That is something we should do in the light of day through Congress.”

Tax Fairness WI -- taxfairnesswi.org

What are we left with?A budget that slashes revenue, forcing cuts

“Ryan’s budget, recall, would raise $2 trillion less in tax revenue over the next decade than President Obama’s budget. Ryan’s plan would also spend $5.3 trillion less over that time.”

Ezra Klein, Washington Post

Aug. 12, 2012Tax Fairness WI -- taxfairnesswi.org