Romney's tax plan shows a series of mild tax cuts for all income earners and corporations. The GOP hopeful's plan isn't as aggressive as his rivals, but also adds less to the federal deficit than their plans do.
Basically, there's no one standout winner - except maybe Mitt Romney.
While this middle ground could prove too timid, it could also dodge heavier criticism directed toward other candidates - and push Romney a step closer to the White House.
The Mitt Romney Tax PlanRomney attacked President Obama's increases in taxes and spending when he released his tax plan Wednesday. He promoted his as more balanced and fair than the president's.
"The right way forward is a flatter, fairer, simpler tax system that generates the revenue we need to fund a smaller government that is restrained to its historical size," said Romney.
Here's what Romney has proposed for individual and corporate tax rates:
- Make an across-the-board 20% cut in marginal rates, including:
- Reduce the top income rate from 35% to 28%.
- Cut the lowest tax bracket rate from 10% to 8%.
- Reduce middle-bracket tax rate from 25% to 20%.
- Maintain the current 15% rate on income from qualified dividends and capital gains, except eliminate taxes on interest, dividends and capital gains for taxpayers who pay less than $200,000.
- Repeal the alternative minimum tax (AMT) for both individuals and corporations.
- Eliminate the estate tax.
- Cut corporate tax rate from 35% to 25%.
- Employ a territorial corporate tax structure.
- Enforce the R&D tax credit.
"My plan sends signals of stability to business leaders and investors around the world, conveys a process for accomplishing these goals, and draws on my leadership skills and real-world experience to integrate and implement a comprehensive economic policy," said Romney.