Romney tax plan
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Romney and vice-presidential running mate Rep. Paul Ryan, R-WI, have outlined several broad Romney tax plan goals: do not increase the deficit; do not raise taxes on middle income taxpayers; and do not reduce the share of taxes paid by higher-income Americans.
Romney also has repeatedly made it known he favors an extension of the Bush-era tax cuts for all income levels.
Ryan has said a Romney administration would be able to work with Democrats in Congress to pass a tax re-write, which includes a 20% reduction in individual tax rates across the board, a 10% reduction for businesses and a 20% cut in the top tax rate from 35% to 28%. (President Barack Obama plans to raise that rate to 39.6%).
But neither Ryan nor Romney has yet to give full details on which tax breaks will be scaled back to avoid adding to the mushrooming federal deficit, which topped $1 trillion in 2012 for the fourth straight year.
The lack of Romney tax plan details prompted President Obama to call it "sketchy" at the second presidential debate.
"Governor Romney was a very successful investor," said the president. "If somebody came to you, governor, with a plan that said, here, I want to spend $7 or $8 trillion, and then we're going to pay for it, but we can't tell you until maybe after the election how we're going to do it, you wouldn't have taken such a sketchy deal and neither should you, the American people, because the math doesn't add up. We haven't heard from the governor any specifics beyond Big Bird and eliminating funding forPlannedParenthood in terms of how he pays for that."
The nonpartisan Tax Policy Center released a report claiming Mitt Romney's tax plan would "provide large tax cuts to high-income households, and increase the tax burdens on middle- and/or lower-income taxpayers."
President Obama responded by calling the Romney tax plan a Robin Hood reversal and dubbed the former governor's plan "Romney Hood."
Romney responded with a childish quip of his own calling the president's remarks "Obamaloney."
But if you want to take a step back from the negative tone of campaigning, one tax plan clearly stands out as a winner for investors.
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.