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How Do The Tax Plans Of Mitt Romney, Rick ********, And Newt Gingrich Differ?

03.14.2012 · Posted in Finance Articles

With President Barack Obama picking up some election year steam with some job growth and a slow but steady trudge toward recovery, the Republican candidates for the presidential nomination have found their jobs more challenging than ever before. Ultimately, a number of issues could seal the deal for one of the Republican candidates, but first, they will have to fight through each other. In order to do this, the tax issue will be what makes or breaks their chances at the nomination as well as the Presidency. Each of them have ideas how the tax code should be changed, and each differ about how they will make their plans into realities. rnrnOn capital gainsrnrnGingrich believes the capital gains tax is an unfair one that punishes the investor for making good, sound investment decisions. He argues that the money used for original investment was already taxed, so why should the proceeds of that money be taxed as well. Romney is sympathetic to the plight of investors, but he’s not ready to get rid of the capital gains tax just yet, though he would like to slash it substantially, as would Rick ********, to just around 12 percent. Under ********, the cuts would apply to dividends paid out by stocks and mutual funds as well. rnrnOn the tax codernrnAll three men favor a simpler tax code. Gingrich believes that tax payers should be given a choice between the old system, and taking advantage of the loopholes and exemptions there now, or a new flat tax plan in which every American pays just 15 percent in federal income taxes. Gingrich’s plan would not apply to the capital gains money, so many have criticized his plan on the grounds that richer people would pay nothing in taxes. Romney also favors a flat tax, while ******** would want to cut the rates to 10 percent for low and middle come Americans and 28 percent to the wealthy. rnrnOn deductionsrnrnGingrich favors the deduction for charitable giving and home buying. Romney believes the Bush era tax cuts should take on a more permanent role in the discussion for tax reform. ******** wants to aid families with children by tripling the standard deduction for every child the family has. All these would provide some form of tax relief, but all three candidates believe too many Americans are getting out of paying taxes altogether, and that each should start “doing their part” no matter what tax bracket they may find themselves in. rnrnRomney is the only one of the candidates that has made a direct attack on “Obamacare.” If elected, he would fight to cut the required taxes needed for funding the health care plan, essentially rendering it ineffectual and unenforceable.

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