Comparison of Tax and Budget Plans |
|||
|
Obama |
Romney |
Simpson-Bowles |
|
|
Top Marginal Rate on Personal Income |
39.60% |
28% |
23%-28% |
|
Top Marginal Rate on Long Term Capital Gains |
30%* |
15% |
23%-28% |
|
Top Marginal Rate on Dividends |
43.4%** |
15% |
23%-28% |
|
Top Marginal Rate on Corporate Income |
28% |
25% |
26%-28% |
|
Top Marginal Rate on Corporate Income from Foreign Sources |
28% |
0% |
0% |
|
Tax Expenditures (Some 250 credits, deductions, and other preferences amounting to more than $1 trillion a year) |
Adds more than are taken away and complicates many existing ones, though limits benefits for high-income earners |
Potentially eliminates all, except middle-class preferences for mortgage, health, retirement, and charity |
Eliminates all under the 23% top rate plan; Eliminates all but Child Credit, EITC, mortgage, health, and retirement benefits under the 28% top rate plan |
|
Alternative Minimum Tax, PEP and Pease (Limitations on high-income tax benefits) |
Maintains PEP and Pease; replaces AMT with a “Buffett Rule” minimum tax of 30% |
Eliminates |
Eliminates |
|
Increases the top rate from 2.9% to 3.8% |
Maintains |
Increases the wage base 2% each year until 2050 |
|
|
Other Taxes Contained in Patient Protection and Affordable Care Act (“Obamacare”) |
Maintains |
Eliminates |
Maintains |
|
Maintains |
Eliminates |
Maintains |
|
|
18¢ per gallon |
18¢ per gallon |
23¢ per gallon |
|
|
Tax Revenue as a Share of GDP in 2015 |
19.40% |
18.00% |
19.30% |
|
Spending as a Share of GDP in 2015 |
22.40% |
20.00% |
21.40% |
|
Deficit as a Share of GDP in 2015 |
3.10% |
2.00% |
2.10% |
|
Publicly Held Debt as a Share of GDP in 2015 |
79.40% |
Not Scored |
69.00% |
|
Balanced Budget |
Never |
2020 |
2037 |
|
* Based on the “Buffett Rule” minimum tax of 30%. ** Includes the 3.8% investment tax under the Affordable Care Act. Sources: Candidate statements, CBO |
