2012 Presidential Hopeful Tax Plan: Romney
Friday, January 13, 2012 at 9:16AM The Tax Policy Center has produced the following description of Mitt Romney's tax plan. The full text and additional analysis can be found here:
Governor Romney would permanently extend all the 2001 and 2003 tax cuts now scheduled to expire in 2013 and continue to "patch" the alternative minimum tax, but would allow some recently enacted provisions to expire and would repeal certain tax provisions in the 2010 health reform legislation. Tax provisions in the 2009 stimulus act and subsequently extended through 2012 would expire. These include the American Opportunity tax credit for higher education, the expanded refundability of the child credit, and the expansion of the earned income tax credit (EITC). The plan would also eliminate tax on long-term capital gains, dividends, and interest income for married couples filing jointly with income under $200,000 ($100,000 for single filers and $150,000 for heads of household) and repeal the federal estate tax, while continuing the gift tax with a maximum tax rate of 35 percent.2
At the corporate level, the Romney plan would make two major changes: 1) reduce the corporate income tax rate from 35 to 25 percent and 2) make the research and experimentation credit permanent and extend for one year the full expensing of capital expenditures. It would also allow a "tax holiday" for the repatriation of corporate profits held overseas but does not specify whether repatriated earnings would face any tax (and, if so, at what rate). In the longer run, Gov. Romney would reduce the corporate rate further in conjunction with base broadening and simplification and would move the corporate tax to a territorial system.
Gov. Romney would also permanently repeal the 0.9 percent tax on wages and the 3.8 percent tax on investment income of high-income individual taxpayers that were imposed by the 2010 health reform legislation and are scheduled to take effect in 2013.
The Tax Policy Center compiled this information from Believe in America: Mitt Romney's Plan for Jobs and Economic Growth and through correspondence with the Romney campaign.
Jess Monnette
Mitt Romney has recently updated his tax plan.
He proposes a 20% cut in personal marginal rates.
According to the Tax Foundation, the new rates for a single filer would be as follows.
|
Mitt Romney
Marginal Rates for Single Filer |
|||
|
Current Rates |
Romney Rates |
Brackets |
|
|
10.0% |
8.0% |
> |
$0 |
|
15.0% |
12.0% |
> |
$8,700 |
|
25.0% |
20.0% |
> |
$38,350 |
|
28.0% |
22.4% |
> |
$85,650 |
|
33.0% |
26.4% |
> |
$178,650 |
|
35.0% |
28.0% |
> |
$388,350 |