October 3, 2012 |
Mitt Romney made two claims about his tax plan that deserve scrutiny: That it would not lower the tax burden on upper-income households and would not add $5 trillion to the debt over the decade. Romney's proposed tax changes would work like this: He would cut income tax rates by 20% across the tax brackets and eliminate taxes on capital gains and dividends for those earning less than $200,000; but to avoid lost revenue - keeping the plan "revenue neutral" - he calls for closing tax loopholes and deductions enjoyed by upper-income households.
October 8, 2011 |
President Obama and Democrats in Congress have aligned on a populist, "tax the rich" strategy for the 2012 campaign. Now they have to figure out exactly who that is. It was clear they had not resolved the thorny question last week, as Senate Democrats unveiled a new "millionaires tax" to pay for the president's jobs bill. The proposal neatly replaced Obama's preferred funding plan and probably bolstered the bill's chances in the Senate. But it also appeared to depart from the party's previous characterization of "the haves we're asking to have less.
September 18, 2012 |
WASHINGTON -- Many of the people criticized by Republican presidential candidate Mitt Romney for not paying income taxes actually do pay taxes -- specifically the federal payroll tax, the independent Tax Policy Center said. And nearly half of those who do not pay federal income taxes are elderly, the group found in an analysis last year. About 46.4% of households paid no income tax in 2011, according to a breakdown by the center, a joint venture of the Urban Institute and the Brookings Institution.
December 13, 2011 |
Newt Gingrich's proposed tax plan would cut federal revenue by nearly $1.3 trillion, or 35%, according to an analysis by the nonpartisan Tax Policy Center. Much like Texas Gov. Rick Perry's plan, Gingrich proposes to let taxpayers choose if they want to calculate their tax using the current code, or a flat 15% rate. (Perry's plan gave the option of a 20% flat rate.) Because the plan allows taxpayers to choose how they want to calculate what they owe, nobody would be worse off. But, as was the case with Perry's plan, the idea that taxpayers would have to calculate their liability twice might turn some people off. The plan would do away with the Alternative Minimum Tax and most deductions and credits, but would keep deductions for mortgage interest and charitable gifts and the earned income, child and foreign tax credits.
January 2, 2013 |
Americans may be breathing a deep sigh of relief that Congress resolved the so-called fiscal cliff crisis for the time being - until they see their next pay stubs. That's because payroll taxes will increase on most workers after Congress decided not to reverse an expiration of a payroll tax cut - a development that was largely expected. Payroll taxes rose to 6.2% under the deal, from 4.2% last year. The nonpartisan Tax Policy Center estimates that 77% of Americans will see higher taxes because of the elimination of the payroll tax cut, meaning $115 billion less in disposable income.
August 1, 2012 |
AKRON, Ohio - Campaigning in contested territory, President Obama on Wednesday used Mitt Romney's tax proposals to frame the election as a choice between policies that would benefit the wealthy and those that would help the middle class. In two stops in the north-central part of the state, Obama slammed his unofficial GOP opponent for trying to revive failed trickle-down tax plans. Obama noted that Romney himself would benefit from his plans to cut tax rates for the nation's top earners and pointed to a new study that bolstered his claims.