Obama and Romney on tax issues

This summary was prepared by CCH and IMO really helps to summarize and highlight the differences in the two party candidates’ ideas on tax issues:

Obama on Individual taxes

• 2013 rates higher for higher-income taxpayers only

• Unspecified future date: lower rates for middle/lower income brackets

• Higher capital gains/dividend rate for higher-income taxpayers

• $3.5 million estate tax exemption/45% rate

• Replace AMT with “Buffett rule”

Obama on Corporate Taxes

• Reduce maximum corporate tax rate to 28% (25% for manufacturing)

• Maintain worldwide system but with reforms

Romney  on Individual taxes

• 2013 rates same as 2012 for all taxpayers

• Unspecified future date: 20% income tax rate reduction for all taxpayers

• Eliminate tax on investment income for AGI below $200,000

• Abolish the estate tax

• Repeal the AMT

Romney on Corporate Taxes

• Reduce maximum corporate rate to 25% Implement territorial system of international tax