Obama vs. GOP Candidates: Tax Plan Comparison

ATR ^ | 2012-02-22 | Ryan Ellis

[92nina]

Mitt Romney this week released “version 2.0” of his tax plan. It and those of his GOP primary competitors stands in contrast to the tax plan offered by President Barack Obama in his FY 2013 budget. In this budget, he announced that he is for tripling the tax rate on dividends, raising the tax rate at which the majority of small employer profits face taxation, hiking the capital gains rate, bringing the death tax to nearly half of an estate’s value, and raising taxes to hurt energy consumers. The list of tax hikes in the Obama budget is frankly staggering.

By contrast, the four Republicans running for office have signed the Taxpayer Protection Pledge. They are for cutting tax rates, not raising them. They are for lower taxes on employers, savers, and families. The contrast with President Obama is striking:

Mitt Romney

Newt Gingrich

Ron Paul

Rick Santorum

President Obama

Taxpayer Protection Pledge Signer

Yes

Yes

Yes

Yes

No

Individual Income Tax Rates

8% 12% 20% 22.4% 26.4% 28%

15% Flat Optional

10% 15% 25% 28% 33% 35%

10% 28%

10% 15% 25% 28% 33% 36% 39.6%

Business Tax

25% Corporate 28% Small Business

12.5% Corporate 15% Small Business

15% Corporate 35% Small Business

17.5% Corporate 28% Small Business 0% Manufacturing

28% Corporate 43% Small Business

AMT

Eliminate

Eliminate

Unchanged

Eliminate

Keep 2011 Patch

Cap Gains-Dividends Rate

15%/0% for <$200k

0%

0%

12%

23.8% Cap Gains 43.4% Dividends

Payroll Tax

No Position

Optional Personal Accounts

Opt-out

No Position

One time 2% rate rebate

Death Tax

Killed

Killed

Killed

Killed

45% $3.5 million exemption

Full- Business Expensing?

No

Yes

Yes

Yes

One time

Territoriality

Yes

Yes

Just Repatriation

Just Repatriation

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*the payroll tax is currently 15.3% (12.4% for Social Security, 2.9% for Medicare) notionally split evenly between employers and employees. A wage and self-employment cap of $106,800 exists for the Social Security tax. The Medicare tax applies to all wages and self-employment profits.

Column Definitions: Tax Pledge: Has the candidate signed the “Taxpayer Protection Pledge” sponsored by Americans for Tax Reform?

Individual Rates: What tax rate or tax rate range does the candidate want the individual income tax to have?

Business Tax: At what marginal tax rate would the candidate tax corporate and small business profits?

AMT: Has the candidate endorsed any changes to the Alternative Minimum Tax?

Cap Gains: At what marginal tax rate would the candidate tax capital gains and dividends?

Payroll Tax: What, if any, changes would the candidate make to the Social Security and Medicare payroll tax system?

Death Tax: What, if any, changes would the candidate make to the death tax?

Full Business Expensing: Is the candidate in favor of letting all businesses deduct all purchases the first year?

Territoriality: Does the candidate support ending the double taxation of income earned overseas?

Chart Citations

Romney: http://mittromney.com/blogs/mitts-view/2011/09/believe-america-mitt-romneys-plan-jobs-and-economic-growth

Paul: http://www.ronpaul2012.com/the-issues/taxes/

Gingrich: http://www.newt.org/contract/legislative-proposals#Two

Santorum: ATR staff communication with Santorum staff

Obama: http://www.whitehouse.gov/sites/default/files/omb/budget/fy2012/assets/tables.pdf

[92nina]

An updated look at the tax plans of Republican candidates in relation to that of Obama's

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at Digg and at Reddit and in Stumbleupon and Delicious

[KingofZion]

This chart is better than anything I’ve seen in MSM - well done. However I am skeptical that any GOP Prez will be able to eliminate the AMT. Which means perversely that I will actually pay less tax under Obama than Romney’s plan because the AMT wiped out all of the Bush tax cuts for me in 2010 and 2011. In fact Romney’s plan is even worse as he has proposed eliminating the mortgage interest deduction, which is the only significant break I get under AMT.

The Romney plan is great if you are a hedge fund manager and don’t pay AMT. Obama is better for salaried working stiffs at all levels. Santorum is just Obama light and seeks to continue the class warfare dividge. Newt’s tax plan is really the best on the board for people at all income levels.

[92nina]

Possibly a budgetary reconciliation move would turn it off for a few years. But that would require both houses of Congress and the President to commit. (Though it couldn’t be filibustered in the Senate.)