Article source: CBS News -- Comparing The Gingrich
and Romney Tax Plans
Now that election time is drawing near, the Republican candidates are turning to harp on the tax system. They've vetoed tax plans that would
increase taxes on the wealthy -- so it's a good time to take a look at what the two Republican front runners are saying.
It' s not pretty for the middle class.
Newt wants zero 'capital gains' taxes (which are the returns on income from investments (annuities, stock markets, etc)) These are types of
moneymakers that aren't available to most people, and mean that the very wealthy will get a lot more wealthy. He see this as a way of creating
The problem here (as I see it) is that if you're wealthy, you aren't necessarily out there creating jobs. You might hire maids, a nanny, a
gardener, and maybe a driver or so -- but that's not the same thing as starting up a motorcycle business and employing three mechanics and three
salespeople and a bookkeeper. Many companies have a staff of 500 to 1,000 -- but very few people have a staff that large. Many of the wealthy would
prefer to use the money for personal expenses rather than starting yet another business.
Romney -- well, he says that if he's elected, he'll work to make sure that there's no taxes on on dividends, interest and capital gains if you make
less than $200,000. He's also vowed to permanently extend the Bush tax cuts (lowering individual income tax rates, but cutting the child tax credit
in half -- and let me tell you, THAT move really hurt working parents.) He'd eliminate estate taxes (something the wealthy have always wanted) and
cut corporate tax rate from 35 percent to 25 percent.
So, what's it going to do to the budget? Well, The Tax Policy Center in Washington says that if the Bush tax cuts stay in place, they estimate that
Romney's plan would bump the deficit up by $180 billion
in year 2015. Gingrich's plan would add $850 billion that year.
I think they're awfully optomistic about what the rich are going to do with that money. My own take on it is that the rich will just run around
buying pretties rather than starting new industries (like solar companies.)