Romney Plan Adds $600B to Deficit: Analysis
By Steven Sloan - Jan 5, 2012 4:13 PM ET
Republican presidential candidate Mitt Romney’s tax proposal would add $600 billion to the U.S. budget deficit in 2015, according to a study released today by the nonpartisan Tax Policy Center in Washington.
The analysis compares the revenue that Romney’s tax-code changes would generate compared with expected U.S. revenue under current law, which assumes that several income tax cuts will expire as scheduled at the end of 2012.
The numbers were released five days before Romney, a former Massachusetts governor, seeks to solidify his front-runner status with a win in the New Hampshire primary.
The analysis said Romney’s plan would “reduce federal tax revenues substantially” though not as deeply as some of his opponents. In a separate study released Dec. 12, the Tax Policy Center said former U.S. House Speaker Newt Gingrich’s proposed tax regime would add $1.3 trillion to the budget deficit in 2015.
Romney’s economic plan calls on Congress to immediately lower the top corporate tax rate to 25 percent from 35 percent. He has said he would be open to additional rate cuts if they are accompanied by measures that would broaden the income base.
He would move the U.S. to a so-called territorial system of taxation, in which the government taxes only domestically generated corporate income. Republican leaders in Congress have shown interest in this concept. House Ways and Means Chairman Dave Camp, a Michigan Republican, introduced a proposal in October that would shield 95 percent of profits earned offshore from taxation in the U.S.
Individual Taxes
For individuals, Romney would lower the 35 maximum tax rate over time though he hasn’t specified a rate target. He would eliminate the estate tax and make permanent the current 15 percent rate on dividends and capital gains. Taxpayers with an adjusted gross income of less than $200,000 wouldn’t pay any taxes on capital gains or dividends.
more:
http://www.bloomberg.com/news/2012-01-05/romney-plan-adds-600b-to-deficit-analysis.html
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