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Summary of Major Tax Proposals by GOP Presidential Candidates

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Major Federal Tax Issues Rep. Michele
Bachmann
Herman
Cain
Newt
Gingrich
Jon
Huntsman
Rep. Ron 
Paul
Gov. Rick
Perry
Mitt
Romney

Rick
Santorum
 Individual Income and Payroll Provisions
Expiring Tax Cuts1 Extend all

Replace

Extend all

Replace

Extend all

No extensions

Extend all

Replace

Tax Rates and Brackets Reduce number of brackets

Repeal individual income taxes

Choice of current system or 15% single rate

Three rates: 8%, 14%, and 23%

Replace individual income tax with Fair Tax or Flat tax after repealing the 16th Amendment

Choice of current system or 20% single rate2

Reduce all ordinary tax rates 20%; top tax rate would be 28%

Two rates: 10% and 28%

Capital Gains and Dividends, and Interest Income - - Exempt3 Exempt capital gains and dividends Exempt capital gains Exempt qualified dividends and long-term capital gains Exempt for households with AGI
less than 
$200,000
12% rate on capital gains and dividends
Exemptions, Deductions, Credits, and Other Tax Preferences - -

1) Allow $12,000 exemption
per person
2) Retain child credit, EITC,
and deductions
for mortgage
interest and charitable contributions 
3) Allow tax credit or deduction for health insurance purchased

Eliminate all deductions and credits Has supported legislation to provide additional tax credits and deductions for  education costs, alternative energy,  and health care

Under alternative syetem
1)$12,500 per person exemption
2)Deductions for charitable contributions, mortgage interest, state and local taxes
3) Phase out 
deductions
 for incomes over $500,000

Limit tax preference for high-income taxpayers to maintain current revenues and distribution of tax shares Retain deductions for charitable giving, home mortgage interest, for healthcare, and retirement. Triple the exemption for dependent children
AMT "Fix the AMT" - Repeal3 Repeal Repeal Retain and do not patch under current system: repeal under 20% single rate system Repeal Repeal
Refundable Credits Eliminate4 - Retain EITC and CTC Eliminate - Eliminate5 Retain Retain
Payroll Tax - Repeal Future repeal6 - - - Supports a temporary reduction in payroll tax if properly structured -
Taxes under the Affordable Care Act of 20107 Repeal Repeal Repeal Repeal Repeal Repeal Repeal Repeal
Other Issues - Replace individual income taxes with consumption taxes (see below) - - Repeal 1993 tax increase on Social Security benefits; eventually exempt Social Security benefits from taxation Eliminate taxes on Social Security benefits. For eight years, taxpayers may choose to pay either tax under current law or 20 percent flat tax - Eliminate marriage penalties
Business Tax Provisions
Corporate Tax Rates - Repeal corporate income tax 12.5% 25% 15% 20% 25% Cut corporate tax rate in half to 17.5% and reduce to 0% for manufacturers
Tax Preferences - - Full expensing of capital expenditures (equipment and infrastructure) Eliminate "all loopholes, deductions and tax expenditures" - 1) Phase out corporate tax preferences 2) Retain industry-wide energy tax incentives for research and development
3) Full expensing for research and capital expenditures
1) Temporary Investment Tax Credit 2) Extend for one year the expensing of capital expenditures
3) Make research and development credit permanent
Increase R&D credit from 14% to 20% and make permanent. allow 100% expensing of equipment
Repatriated Corporate Profits Allow repatriation at 5% tax rate following limited tax-free period - - Tax holiday Allow tax-free repatriation Temporarily lower the tax rate on repatriation to 5.25% Tax holiday Eliminate tax on repatriated corporate income if used to invest in plant and equipment; tax other repatriated profits at 5.25% rate
Other "Make corporate tax code simpler and fairer" Replace corporate income tax with consumption tax (see below) Change to a territorial system Change to a territorial system - Change to a territorial system  1) Couple further rate reductions with base broadening and simplification; 2) Change to a territorial system
3) Repeal corporate AMT
-
Consumption Tax Provisions
Tax Rate - 1) 9% 
"individual 
flat tax"
 2) 9% "business flat tax"
3) 9% retail sales tax
- - - - - -
Tax Preferences - 1) Allow deduction for charitable contributions under individual tax. Empowerment Zones will allow additional deduction for individuals living/working in the zone.
 2) Under business tax, Empowerment zones will allow deductions for payroll 
of those 
employed in the zone.
- - - - - -
Other NA  Move to the Fair Tax (a retail sales tax)in the future - - Eventually move to Flat Tax or the Fair Tax after repealing the 16th amendment - - -

Estate Tax Provisions

Estate tax Repeal Repeal Repeal Repeal Repeal Repeal Repeal Repeal


Last updated: February 23, 2012

Note:
The Tax Policy Center will update this table as new information becomes available.

1. Most tax cuts enacted between 2001-10 are scheduled to expire in 2013.
2. Gov. Perry would allow taxpayers the option of paying individual income tax under current law for up to eight years. People choosing 20 percent option may not switch back.
3. Mr. Gingrich's framework would exempt capital gains and dividends and repeal the AMT in his single tax-rate system. Those changes would not apply to people opting to file under the current tax system.
4. Rep. Bachmann proposes that every taxpayer pay some individual income tax. That would require eliminating refundable credits.
5. Gov. Perry's flat tax framework would eliminate all refundable credits. 
6. Mr. Gingrich proposes to replace payroll taxes with "personal accounts" in the future.
7. All the GOP presidential candidates have pledged to repeal the Patient Protection and Affordable Care Act of 2010, presumably including the taxes imposed by the act.

Sources:

1. Rep. Michele Bachmann, "American Jobs, Right Now: Blueprint for Economic Prosperity and Job Creation." 
2. Herman Cain, "Cain's Vision for Economic Renewal: 9-9-9." 
3. Newt Gingrich, "21st Century Contract with America"; "Let's Bump Plans: A Comparison of Gingrich and Romney's Tax Plans"; "Gingrich's Plan to Restore American Manufacturing is Far Bolder than Romney's."
4. Jon Huntsman, "Time to Compete: An American Jobs Plan."; "Jon Huntsman's Jobs Plan: Lower Taxes, Simplify Code." 5. Rep. Ron Paul, "Lower Taxes, Keep More of Your Money"; "Tax Reform Promises Treats, Delivers Tricks.";
"Plan to Restore America."
6. Gov. Rick Perry, "Governor Rick Perry's 2020 Vision: Cut, Balance and Grow"; "Energizing American Jobs and Security";  and "My Tax and Spending Reform Plan."
7. 7. Mitt Romney, "Believe in America: Mitt Romney's Plan for Jobs and Economic Growth."  ; "Fact Checking the Republican Debate on the Economy." The New York Times. October 11, 2011. Available at ; "Restore America's Promise: More Jobs, Less Debt, Smaller Government." 
8. Rick Santorum, "Defender of the Taxpayer."

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