Let’s put Obama’s newest scheme up against Romney’s latest statement:
Obama proposes lowering corporate tax rate to 28 percent…
Mr. Obama is proposing to raise the dividend tax rate to the higher personal income tax rate of 39.6% that will kick in next year. Add in the planned phase-out of deductions and exemptions, and the rate hits 41%. Then add the 3.8% investment tax surcharge in ObamaCare, and the new dividend tax rate in 2013 would be 44.8%—nearly three times today’s 15% rate.
Keep in mind that dividends are paid to shareholders only after the corporation pays taxes on its profits. So assuming a maximum 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%.
~Wall Street Journal
Which is why he wants to lower the corporate tax rate 7% – it makes the total liability of dividends to be about 57%. WHO is going to risk their money on any corporation in this very uncertain regulatory climate, when the gov’t will take more than half of what you earn?!?!?!?!?!?
Great Britain has a 50% tax rate on their wealthiest citizens… how’s that workin’ out fer them…?
The Treasury received £10.35 billion in income tax payments from those paying by self-assessment last month, a drop of £509 million compared with January 2011. Most other taxes produced higher revenues over the same period.
Senior sources said that the first official figures indicated that there had been “manoeuvering” by well-off Britons to avoid the new higher rate.
~ London Telegraph
And now, a refreshing breeze from Mitt:
First, I will make an across-the-board, 20% reduction in marginal individual income tax rates…
Second, I will reduce the corporate tax rate to 25% from 35%, transition from a world-wide taxation system to a territorial one, and make the R&D [research & development] tax credit permanent.
Third, I will promote savings and investment by maintaining the low 15% rate on capital gains, interest and qualified dividends, and eliminate the tax entirely for those with annual income below $200,000. [This will encourage us little guys to engage in the stock market with less to lose.]
Fourth… I will abolish the death tax, whose primary effect today is to foster elaborate schemes for transferring wealth [uh, YEAH.] I will also repeal the Alternative Minimum Tax, which was intended to make the code simpler and fairer but has accomplished precisely the opposite.
Fifth, I will bring stability to the tax code by making these changes permanent. People and businesses should not live in perpetual uncertainty, waiting to see what changes the annual partisan battles in Washington will make to what they owe. One recent study estimated that simply returning policy certainty to pre-Obama levels could create 2.5 million jobs in less than two years.
[All quotes courtesy of From On High]