Obama & Romney Tax Plans

Now that the election is only days away, it is helpful to look once again at the Obama and Romney Tax Plans. I get this information from the Tax Policy Center (TPC) who has done excellent work on this.

Click here to find TPC's more in depth analysis for Obama and Romney.

Obama's plan in a nutshell (Quote From TPC):

The elevator speech: Obama would retain the current individual income tax system, but raise taxes on high-income households to help reduce the budget deficit. He'd lower corporate tax rates but make it harder for multinationals to avoid U.S. tax on their foreign income.

Romney's plan in a nutshell (Quote From TPC):

The elevator speech: Romney favors multiple tax cuts for individuals and would reduce corporate income tax rates. By themselves, his specified tax cuts would reduce federal revenues by trillions of dollars over the next decade. However, Romney says he would avoid adding to the deficit through faster economic growth and unspecified reductions in current tax preferences. Romney would not use new taxes to help lower the deficit.

Capital Gains and Dividends: One important distinction between Obama and Romney's plans is that Obama proposes an increase of the dividend rate to 39.6% (up from the current 15% rate) and the capital gains rate increased to 20%. Romney proposes to make capital gains and dividends tax free (to households making $200,000.00 or less) and keep the current 15% rate for those making $200,000.00 or more.