Tax Policy Center: Romney's Plan Is the Anti-Robin Hood of Tax Plans

      Does Romney's tax proposal provide hefty tax cuts to the wealthy while increasing the tax burden on the low and middle class? According to a study released today by the nonpartisan Tax Policy Center, the answer is a resounding yes. Experts at the Tax Policy Center, a joint venture between the Urban Institute and Brookings Institute, have concluded that those who earn more than $1 million would save around $87,000 under Romney's Plan while those who earn less than $200,000 would actually see their taxes increase by as much as $1,339. The tax increase is due to the loss of popular tax breaks that Romney would slash, most notably those for employer health insurance and mortgage interest.
       The heart of the analysis by the Tax Policy Center sought to examine the tradeoffs between Romney's proposal to slash income taxes by 20% across the board and the revenue he would gain from broadening the base, mostly through the elimination of loopholes. Of course, the Romney campaign denounced the study as liberal, citing that it failed to include his proposed spending cuts as well as the effects of his corporate tax cuts. To the Tax Policy Center's credit, Romney has not yet put on the table what those proposed cuts are. He also has yet to specify which deductions and loopholes he would eliminate. 

Basic Outline of Obama and Romney's Tax Plans

Individual Taxes

Obama:
>Raise Taxes on the wealthy, ensuring they pay 30% of their income at a minimum. The top two tax rates to go up 3 to 4 percentage points to 39.6% and 36%.
>Supported extending Bush-era tax cuts for individuals with incomes less than $100,000 and couples with incomes less than $250,000 (he supported 2-yr. extension for all in 2010).
>Raise capital gains and dividends on the wealthy.
Romney:
> Cut taxes by 20% across the board, so the highest tax bracket of 35% will pay 28%. (According to his plan: "Romney believes that the high marginal rates on a narrow base discourage work, savings, and investment. 54% of private sectors workers are employed outside of corporations, so these individual rates also define the incentive for job-creating businesses.")
>Keep the bush-era tax cuts for all incomes.
> He wants current taxes on interest rates, dividends, and capital gains. Taxpayers with AGI below 200,000 will not have to pay any interest rate, dividends, or capital gains taxes. Furthermore, he wants to eliminate the Estate Tax and repeal AMT. 
> Limit deductions, credits and exemptions for the wealthiest.

Corporate Taxes 

Obama:

>Slash the corporate tax rate to 28% (currently it's 35%) by closing some 130 tax loops businesses can take advantage of. The Obama Administration expects that closing eliminating these advantages will bring in $250 billion over 10 years. 
>There will be some loops that will remain in order to incentivize clean energy, domestic manufacturing and R&D firms. 
Romney:
>He wants to cut the corporate tax rate to 25%.
>Strengthen and make permanent the R&D tax credit , switch to a territorial tax system, and repeal AMT.