Table: Obama, Romney, and Bowles-Simpson Tax Plans

September 6, 2012

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

Payroll Tax

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

Estate Tax

Maintains

Eliminates

Maintains

Gas Tax

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

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