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Differences between Obama and Romney Tax Plans

Differences between Obama and Romney Tax Plans

The tax plans of President Obama and Mitt Romney are being examined more closely as the election nears. There are significant differences between the two, with Obama’s plan calling for higher taxes on the wealthy and Romney’s plan proposing tax cuts across the board. These plans will have a huge impact on taxpayers and the economy as a whole, so it is important to understand the details of each proposal.

What is Obama Tax Plan?

  • Obama’s Tax Plan is a set of proposals put forth by then-President Barack Obama during his time in office. The plan called for a series of tax cuts and increased taxes on the top earners in order to generate revenue and close the budget deficit. The plan was enacted through the Affordable Care Act, which also included provisions for expanding healthcare coverage.
  • Obama’s Tax Plan was typically aimed at those making over $250,000 per year and included a variety of tax increases and cuts. For example, the top marginal income tax rate was raised from 35% to 39.6%. The estate tax was also increased, and the Medicare payroll tax was implemented.
  • Obama’s Tax Plan was met with mixed reactions, with some arguing that it would help to reduce the deficit while others claimed it would hurt the economy. Ultimately, Obama’s Tax Plan did not fully materialize due to opposition from Republicans in Congress. However, many of the provisions from the plan were enacted through other means, such as the American Recovery and Reinvestment Act of 2009.

What is Romney Tax Plan?

Romney has released several tax plans during his political career. The Romney Tax Plan of 2018 was a $1.52 trillion tax cut package proposal unveiled by Romney during his 2018 senatorial campaign in the United States. The Romney Tax Plan of 2019 was a $650 billion tax cut proposal unveiled by Romney during his 2020 presidential campaign. Romney also proposed $250 billion in annual spending cuts. The Romney Tax Plan has been criticized by some as being fiscally irresponsible and benefiting the wealthy more than the middle class and poor. Romney has defended his tax plan, saying that it will create jobs and grow the economy.

Differences between Obama and Romney Tax Plans

There are several key differences between Obama and Romney’s tax plans. For one, Obama proposes to let the Bush-era tax cuts for families making over $250,000 expire while Romney would extend them.

  • Obama also wants to close a number of loopholes and deductions for upper-income taxpayers, while Romney would cut rates across the board. As a result, Obama’s plan would result in a net tax increase for high-income earners while Romney’s would provide a tax cut.
  • Obama has also proposed a “Buffett Rule” that would ensure that millionaires pay at least 30% of their income in taxes. Romney has opposed this rule, arguing that it would hurt small businesses.
  • Finally, Obama has called for eliminating the estate tax while Romney has proposed repealing it for everyone except millionaires. These are just some of the key differences between the two candidates’ tax plans.

Conclusion

In the end, there are stark differences between the Obama and Romney tax plans. Understanding these differences is important for taxpayers who will be directly affected by whichever plan is chosen. It’s also important to understand that these plans could change drastically in the coming months, so it’s best to stay up-to-date on all the latest news. As always, H&R Block is here to help you navigate through whatever changes come your way.

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