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.
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.
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 2, 2012
Politicians on both sides of the partisan divide want to simplify the federal tax code by pruning the thicket of loopholes, exemptions and credits. In fact, President Obama and his presumptive Republican opponent, former Massachusetts Gov. Mitt Romney, have both promised to seek tax simplification if elected in November. A new study by three fiscal policy experts, however, shows that if simplification is coupled with a deep cut in rates, as Romney has proposed, lower- and middle-income Americans would have to pay more in taxes just to keep the same amount of revenue flowing into the Treasury.
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.