Mitt Romney's Contributions To The Republican Party: Tax Reform

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Tax Reform In recent years, the Republican Party has become increasingly doctrinaire about taxes, with many legislators and candidates signing a pledge promising not to raise taxes under any circumstances, including as a part of any plan for long-term deficit reduction. Romney stands by that pledge, assuring voters that his tax and spending cuts will pay for themselves by “igniting the] growth of our economy.” In addition to 20% across the board reduction in income taxes, he would permanently extend the 2001 and 2003 tax cuts currently slated to expire in 2013, as well as eliminate taxation of investment income and the Federal Estate (commonly referred to by Republicans as 'Death') Tax. Romney has outlined two basic tax principles: the first would be to cut taxes (20% across the board) and the second would be “that people at the high end [top income bracket] will still pay the same share of the tax burden they're paying now”—in other words, Mitt Romney would freeze the share of federal tax payments, not average tax rates. The two principles put together would mean that he could theoretically cut tax rates for everyone without reducing their current tax share. While somewhat technical, the prospective…show more content…
He has made three main proposals: that the top two income tax rates—presently 33% and 35%—rise to 36% and 39.6% (pre- 2001 levels); increase capital gains and dividends for high-income households to 20% from the current 15%; and limit the value of their itemized deductions. In the corporate sector, President Obama's plans largely consist of reducing corporate loopholes and 'unfair' breaks while creating incentives to encourage hiring and investment in the United States. The Tax Policy Center estimates that the Obama plan would raise $2.1 trillion more than if Congress simply extended current

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