Comparing The Gingrich and Romney Tax Plans

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 jobs.

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.)

Neither one sound like they want to cut the head off of what is really causing the problem. Where is their plan to cut the massive amounts of wasteful spending?

reply to post by wardk28


Who knows. I think they're hoping that the rich are going to bail us out of the situation we're in. Me, I'm thinking that ain't happening.

Newt wants zero 'capital gains' taxes (which are the returns on income from investments (annuities, stock markets, etc))

That also applies to the middle class too. If you buy a home for say $100K and sell it for $150K, the gov't wants their cut of that $50K profit, which last I heard was in the 30-40% range! How did Americans go along with this ridiculousness before I was born?? Why should they get a cut of your profits, for doing NOTHING?

Regardless.... none of these "tax plans" actually belong to these actor puppets, their agenda isn't theirs, it's their masters' agendas. Did Obama come through on his promises? Do any of these Presidents ever "end" the previous administrations agendas? You'd think a new President would not go along with the previous one's agenda, but sure enough, it's the same agendas with different faces.

Go vote if it makes you feel better, but if our votes actually mattered, voting would be illegal.

Originally posted by JibbyJedi Did Obama come through on his promises?

He tried. Republicans have not been willing to go along with or compromise on any of the reforms initiated by Obama and the Democrats. They really DO want tax breaks for the wealthy to continue.

That also applies to the middle class too. If you buy a home for say $100K and sell it for $150K, the gov't wants their cut of that $50K profit, which last I heard was in the 30-40% range! How did Americans go along with this ridiculousness before I was born?? Why should they get a cut of your profits, for doing NOTHING?

reply to post by JibbyJedi

Actually, it is even worse than that. Someone who bought a house in 1990 for $100,000 and sold it for say your suggested price of $150,000 actually LOST money on the value of that initial investment. To make it worse, they then TAX your "profit" of $50,000.00 which in ACTUALITY is a loss. You get hit two ways, loss on the sale, and tax on the inflated price.

You can see what the actual dollar value is, from any one year to any other year by going to this link:

www.measuringworth.com...

By plugging in the above figures and looking at the commodity value down the page at the link, you will see that in 2012 inflated dollars, your house is worth $167,000.00 and thus, you sold it for a loss in purchasing power.

The long term capital gains tax is destructive not only to the rich, but to ANYONE that owns a home.

No capital gains tax? So if it is only your money earning it..it is tax free..but if you go out and bust your ass earning that money yourself..the government gets their cut. This is the way you want it? When I do nothing to help anyone on the planet but myself I get tax free..but when I bust my ass and actually produce/provide something to the planet..I get taxed all to h3ll?


Peace