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