Rick Santorum's tax plan


Yesterday, Dave did a post comparing the proposed tax plans of Newt Gingrich and Mitt Romney.
Fairness requires that FOTM also present Rick Santorum’s tax plan. Santorum is not an after thought but is a viable conservative alternative to Romney.
This is the gist of Santorum’s tax plan which I distilled from a CNN Money article, Jan. 18, 2012. The article itself is based on an analysis conducted by the think tank Tax Policy Center:

  • At the basis of Santorum’s tax plan is the premise that the Bush tax cuts are extended.
  • Reduce the number of income tax brackets from 6 to 2 (10% and 28%).
  • Retain many of the largest and most popular deductions, such as those for health insurance, retirement savings, charitable giving and mortgage interest.
  • To strengthen the American family, Santorum proposes:
  • Triple the personal deduction that parents can claim for their children.
  • Eliminate the marriage penalty that often causes two-earner couples to owe more in federal income taxes than if they filed as single individuals.
  • To encourage economic growth and development:
  • Abolish the estate tax and the Alternative Minimum Tax, an income tax imposed on individuals, corporations, estates, and trusts.
  • Reduce the capital gains rate from 15% to 12%.
  • Reduce corporate income tax rate in half to 17.5%.
  • Eliminate all corporate income tax for manufacturers.
  • Increase the research and development credit.
  • Reduce the tax burden on U.S. companies that choose to bring back their overseas profits to the United States.

The net effects of Santorum’s tax plan:

  • 69% of Americans would get a tax cut, averaging nearly $7,800.
  • The richer you are, the more you save under Santorum’s plan: Taxpayers in the lowest 20% of earners would get a tax rate reduction of 0.3%; those in the top 20% of earners would get a tax reduction of almost 10%; those in the top 1% would get an average rate reduction of 13.6%.
  • There’ll be less revenue for the federal government — $900 billion less in 2015 — which will make it more difficult for lawmakers to reduce the deficit. Of course, the analysis by the Tax Policy Center does not take into consideration the increases in tax revenue if the American economy dramatically improves and becomes more productive.

~Eowyn

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0 responses to “Rick Santorum's tax plan

  1. It certainly looks interesting!!! And I believe it can improve in the long run the economy in America.

     
  2. Rick Santorum is my first choice for the Republican nominee. I think his tax plan is very reasonable and motivational!

     
  3. It’s not bad, but i do not think that eliminating all corporate income tax for manufacturers, is not equal protection and therefore would be unconstitutional. Also corp tax rate at 15% and cap gains at 10%…

     
  4. Well, this is not exactly an accurate perspective on Santorum’s tax plan. Santorum’s plan to cut out the tax on manufacturing is not an un-necessary evil. That is not just a tax cut, either. Non-taxing manufacturing would bring home millions of jobs that are already not being taxed. That’s not a tax cut for the rich, it’s just not taxing them to begin with. Sure, a very few of our jobs today are manufacturing jobs, and they would be getting a good break, but they stayed home to begin with and deserve that break even moreso than those who left and hiked off to China. The revenues taken in by the millions of back to work Americans would certainly bury any losses in revenues from giving tax cuts to those who provide the means for us all to have jobs.
    I am appalled that this article is so one-sided to make Rick Santorum look like the “establishment” candidate, when clearly his tax plan to not tax manufacturing is dead in line with Proverbs 13:11. Santorum is the ONLY true conservative in the GOP primary at this time. You should be ashamed of yourselves.

     
    • How is my article “one-sided”? What I did was to present a straight-forward description of Santorum’s tax plan. If you read “establishment candidate” into it, that’s your problem. FYI, Santorum is my No. 1 choice.
      For maligning me and my article, you should be ashamed of yourself.

       
  5. It just seems to me if you support this candidate you should at least go far enough to point out that tax free manufacturing jobs coming in from China is not a tax cut for the rich, but merely a fatted calf. That is not a tax cut for them, because they are not paying in any taxes while they’re in China anyway. Obama wants to penalize over seas investors, which will only cause the most greedy of them to further oppress Chinese workers who already are working for slave wages.
    All that I am saying is that you failed to point out the genius of Santorum’s plan. He, himself, has failed to point that out, for which I have tried to contact him. When he starts talking about offering tax free manufacturing to lure businesses back, it sounds unbelievable that we could miss out on that revenue without compounding our national debt. It takes a little thinking on the subject before one realizes that we are already missing those revenues, and that to further dismiss those revenues while creating jobs bottom lines at net growth in revenues collected. When people just hear the plan in passing, during a debat, or read about it on a blog site like this one, most of them probably never consider that that’s not a break at all, except for the loyal ones who are already here.

     
    • “you should at least go far enough to point out that tax free manufacturing jobs coming in from China is not a tax cut for the rich, but merely a fatted calf.”
      Point to where in my article I said that no taxes on manufacturing industries is a tax cut for the rich.
      “you failed to point out the genius of Santorum’s plan. He, himself, has failed to point that out,”
      Santorum himself failed at something for which you’re damning me?
      You’re some piece of work. Your attitude and behavior ill serve Rick Santorum, your putative pick for GOP nominee.

       

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