If Obama Wins, Romney's Tax Bill Could Jump $5M
BUT A ROMNEY WIN WOULD SAVE OBAMA $90K
By the Associated Press
newser.com
Posted Jun 4, 2012 8:25 AM CDT
(AP) – A fun bit of election math from two non-profit research groups: What will the effect be on rich guys Mitt Romney and Barack Obama's tax bills if the other wins? If Romney wins and enacts his own proposal, he'll pay half what he would under Obama's tax plan—saving almost $5 million a year. Obama, not so loaded as Romney but still well-off, would no longer be in the White House, but he'd be $90,000 richer. Both men would be dinged in 2013 under Obama's proposal. Here's the breakdown, based on Obama's 2011 tax return and Romney's 2010 return:
Romney: Assuming inflation-adjusted earnings of $23 million, he'd pay an effective rate of 34% under the Obama plan. That drops to 13% under Romney's own tax proposal, even lower than the 15% he estimated for 2011. The difference between the two candidates' plans: paying the taxman $7.8 million vs. $3 million.
Obama: Like others who are taxed at earned income instead of investment rates, Obama's bill wouldn't swing as dramatically under the differing plans. He reported paying an effective tax rate of almost 21% on about $790,000 in income in 2011. Under his own plan, that would climb to 28%. Under Romney's plan, it drops to 18%. The difference: $248,000 vs. $158,000. |
