President Obama –
Individual Taxes | Governor Romney –
Individual Taxes |
| Individual Rates |
- 2013 rates increase for higher-income taxpayers.
| - 2013 rates same as 2012 for all taxpayers.
|
| Investment Income |
- Increase long term capital gain rate to 20% for only high income taxpayers.Treat dividend income as ordinary income.
| - Make the "Bush era" capital gain/dividend treatment permanent. Eliminate tax on investment income for AGI below $200,000.
|
- Tax "carried interests" at ordinary Income rates (15% rate currently)
| |
- 3.8% tax on net investment income tax would remain in effect
| - Repeal the 3.8% tax on net investment income slated to take effect in 2013.
|
| Itemized Deductions and Other Individual Items |
- Temporarily repeal itemized deduction limitations. Limit mortgage interest deductions in the future for certain taxpayers.
| - Permanently repeal itemized deduction limitations. Limit mortgage interest deductions in the future for certain taxpayers.
|
- $3.5 million estate tax exemption and a 45% rate. Separate gift tax exemptions.
| - Abolish the estate and gift tax.
|
- Replace AMT with "Buffett rule," described as a means to ensure taxpayers making over $1 million annually would pay an effective tax rate of at least 30 percent.
| |
- Payroll tax holiday-most likely not extended
| - Payroll tax holiday-most likely not extended
|
| |
President Obama -
Corporate Taxes | Governor Romney -
Corporate Taxes |
| Corporate Rates |
- Reduce maximum corporate tax rate to 28% (25% for manufacturing entities) coupled with elimination of unspecified tax preferences.
| - Enact a maximum corporate rate of 25%.
|
| International Tax |
- (1)Subject income earned by subsidiaries of U.S. corporations operating abroad to an unspecified minimum tax rate. (2)Create 20% income tax credit for expenses of moving business operations back to the U.S and disallow deductions for moving business operations abroad. (3)Tax excess profits associated with shifting intangibles to low-tax jurisdictions
| - Shift from a worldwide tax system to a territorial regime.
|
| Other Corporate Items |
- Extend 100% bonus depreciation through 2012.
| - Extend bonus depreciation, but not at 100%.
|
- Extend the research credit and increase the credit rate.
| - Extend the research credit.
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