Romney tax plan would lavish cuts on top 1 percent of earners

BOSTON — As we reported earlier, Mitt Romney flubbed a question in New Hampshire on Wednesday about America's growing problem with income inequality, implying that it was a non-issue despite extensive evidence to the contrary.

Here's more hard evidence that the well-heeled former Massachusetts governor would be the candidate of the 1 percent.

The Tax Policy Center just released an analysis of Romney's "Plan for Jobs and Economic Growth."

The bottom line: Campain spin doctors can claim, accurately, that the plan provides a $1,000 tax cut to the average American. But alas, the devil is in the distribution details. Romney's plan would eliminate from the federal budget about as much money as the Pentagon spends (compared to current tax law).

Who wins? 

Romney's neighbors and supporters. The highest earners would save big time. Corporate taxes would also be slashed, from a nominal rate of 35 percent to 25 percent (in truth, corporations pay far less than 35 percent. In 2010, they handed over less than $191 billion, less than 9 percent of federal revenues in 2010).

Low income Americans would pay more.

Here are the key figures on who would benefit from Romney's tax cut package in 2015, compared to current rates of taxation (meaning, assuming that the 2011 tax law were enacted in perpetuity):

Lowest 20 percent of earners (less than $19,342) — average tax increase of $157
Middle 20 percent ($40,000 to $69,000) — average tax cut of $138
Top 20 percent (more than $119,546) —  average tax cut of $6,899
Top 1 percent (more than $629,809) —  average tax cut of $82,188
Top 0.1 percent (more than $2,868,534) — average tax cut of $82,188

The loss in federal tax receipts in 2015 would be $180 billion compared to the current rates of taxation. Compared to the current law (under which tax cuts enacted between 2001 and 2010 would expire in 2013) Uncle Sam would take a $600 billion hit in 2015. That's about 16 percent of projected federal revenue.

Looking for a silver lining? Romney's plan isn't nearly as regressive as his GOP challengers.

Can get enough of this stuff? Check out the Tax Policy Center's figures and summary.

Read More: Romney's inequality gaffe in New Hampshire