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    Summary of Romney & Gingrich Tax Proposals
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    Summary of Romney & Gingrich Tax Proposals

    January 2012
    As the Republican primary season is in earnest, we've been asked a few times about the difference between the current tax code and the tax proposals by the two current front runners, Newt Gingrich and Mitt Romney. The following table gives the key highlights between the two proposals and the current tax code. More detailed information about the proposals can be found at the Tax Policy Center.
    Tax Issue Current Legislation Gingrich Romney
    Bush Tax Cuts Expires 2013 Extend Maintain current rates
    Tax Rates and Brackets   Give a choice of current system or a flat 15% Lower rates in the future
    Capital Gains, Dividends, and Interest 15% to ordinary income, depending on nature. Exempt Exempt for households with AGI less than $200,000.
    Exemptions, Deductions, and Credits $3,700 exemption per person
    Child tax credit, mortgage interest, charity
    Health insurance a pre-tax benefit
    Allow $12,000 exemption
    per person
    Retain child credit, EITC,
    and deductions
    for mortgage
    interest and charitable contributions
    Allow tax credit or deduction for health insurance purchased
    No short term changes
    Long run – flatten tax base
    AMT Every year this is typically patched for incomes within a certain AGI. Repeal if opt into flat tax, otherwise AMT remains  
    Refundable Credits No expiration Retain earned income credit and child tax credit. Retain
    Payroll Tax Percentage of income goes to government in exchange for a guaranteed future benefit. Migrate to a self-funded model. Temporary reduction if properly structured.
    Taxes under Affordable Care Act of 2010 Miscellaneous taxes associated with the individual mandate for health care. Repeal Repeal
    Estate Tax Set to roll back in 2013 to pre Bush era levels. Repeal Repeal

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