Obama VS Romney
1. Bush-era tax cuts
Obama:
- tax cuts for households earning less than $250,000
- fairness; replace AMT and more tax on millionaires
Romney:
- 20% reduction on all income bracket from 10~35% to 8~28%
- broaden the base by eliminating or reducing deductions and credits
2. Taxes and the rich
Obama:
AMT--> Buffet Rule; millionaires should not have lower tax rate than their secretaries (~40% tax rate for millionaires)- 15% tax rate on dividends and capital gains for families making $250,000 or less, and 20% tax rate for families above that level
- income tax rate on "carried interest"
Romney:
- 28% tax for the top bracket
- 15% tax rate on dividends and capital gains for families earning above $200,000 and eliminating those taxes for those who earns less
- eliminate the embedded investment income surtax
3. Corporate taxes
Obama:
- reduce corporate tax rate from 35% to 28%
- encourage investment at home and discourage offshoring jobs and factories
- eliminating tax deductions for shifting operations abroad
Romney:
- reduce corporate tax rate from 35% to 25%
- "territorial system"; moving profits back to US without further tax
4. Estate tax
Obama:
- reinstate 2009-level estate tax; 45% tax rate after a $3.5 million exemption for assets passed to heirs
- about 0.3% of all estates
Romney:
- "encourages the most complicated and convoluted tax-avoidance schemes at tremendous cost to all involved"
- "it can have catastrophic effects when a small family-owned business, in the course of passing to the next generation, creates tax liabilities that the family cannot meet without breaking up the business itself"
5. Economic impact of taxes
Obama:
- higher taxes on the rich won’t choke economic growth
Romney:
- ensuring lower tax rates for all will rekindle growth and job creation
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