February 23, 2012

SO IT ISN'T SIMPLE AND IT STILL PUNISHES INCOME?:

Mitt Takes a Walk on the Supply Side (G. TRACY MEHAN, III, 2.23.12, American Spectator)

At the heart of Governor Romney's tax plan are permanent, across-the-board 20 percent cuts in marginal tax rates while limiting deductions, exemptions and credits for higher income Americans to insure revenue-neutrality.

As reported by John Harwood for CNBC.com, Glenn Hubbard, Romney's top economic advisor, said the plan would cut all six current tax brackets --10, 15, 25, 28, 33, and 35 percent (depending on the taxpayer's income) -- by the same proportion of 20 percent. This yields new brackets of 8, 12, 20, 22.4, 26.4, and 28 percent. "It's a marginal rate cut for every American," claims Hubbard. Hubbard, a former adviser to President George W. Bush, is now dean of Columbia University's business school.

The Romney plan will also maintain the current 15 percent rate on income from qualified dividends and capital gains but will cut taxes further for lower- and middle-income citizens with annual incomes below $200,000. In addition, it abolishes the Death Tax, i.e., inheritance tax, and repeals the Alternative Minimum Tax (AMT) for both individuals as well as corporations.

The proposal also calls for reducing the current 35 percent corporate tax rate, one of the highest in the industrial world, to a very competitive 25 percent. It makes permanent the R&D tax credit as a spur to innovation for both manufacturing and non-manufacturing businesses.

It's not 1980 anymore.

Posted by at February 23, 2012 6:42 AM
  

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