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Press Release: The Big Choice: Pro-Growth Reforms Vs. Job-Destroying Tax Hikes

October 03, 2012

"Voters have a clear choice in November when it comes to their taxes. President Obama has implemented policies that have punished small businesses and destroyed jobs — and a second term won't be any different. The President's tax hikes will punish the middle class, jeopardize over 700,000 jobs, and impede economic growth. Mitt Romney's plan for pro-growth tax reform will cut tax rates across the board, create a fairer and simpler tax code, and deliver relief to struggling middle-class families." — Andrea Saul, Romney Campaign Spokesperson

As President, Mitt Romney Will Implement Pro-Growth Tax Reforms That Cut Marginal Rates And Create Millions Of New Jobs:

Mitt Romney Will Reform The Nation's Outdated Tax Code To "Increase Growth And Job Creation" By Cutting Rates Across The Board By 20% And Broadening The Tax Base. "Reform the nation's tax code to increase growth and job creation. The Romney plan would reduce individual marginal income tax rates across the board by 20%, while keeping current low tax rates on dividends and capital gains. The governor would also reduce the corporate income tax rate—the highest in the world—to 25%. In addition, he would broaden the tax base to ensure that tax reform is revenue-neutral." (Glenn Hubbard, Op-Ed, "The Romney Plan For Economic Recovery," The Wall Street Journal, 8/1/12)

Mitt Romney's Tax Reform Plan Will Also Cut The Corporate Tax Rate To 25% To Help Make "America A Place Where Investment Capital Flows." "I will lower taxes to lighten the burden on middle-income Americans and to reignite the economy. A key measure will be an across-the-board, 20% reduction in marginal individual income tax rates. By reducing the tax on the next dollar of income earned by all taxpayers, we will encourage hard work and productivity by allowing Americans to keep more of what they earn. ... I will reduce the corporate tax rate to 25%. Currently, it's among the highest in the developed world; I will bring it in line with other nations, making America a place where investment capital flows." (Mitt Romney, Op-Ed, "Restoring The American Promise," CNBC, 3/5/12)

The Romney Plan Will Promote Savings And Investment By Eliminating Taxes On Capital Gains And Dividends For Middle-Class Families. "I will promote savings and investment by maintaining the 15% rate on capital gains and dividends. I will eliminate the tax entirely for those with annual income below $200,000. These low tax rates will encourage Americans to save and invest — and they will encourage business investment and economic growth. I will repeal the Alternative Minimum Tax, and I will abolish the death tax." (Mitt Romney, Op-Ed, "Restoring The American Promise," CNBC, 3/5/12)

According To An Independent, Nonpartisan Analysis, Mitt Romney's Tax Reforms Alone Will Create Nearly 7 Million New Jobs. "The simulations show that such a base-broadening, rate-reducing reform would have significant positive economic effects on the U.S. economy, including increases in investment, the capital stock, employment, and real wages. These gains are in addition to increases in GDP, investment, consumption, and employment that will occur as the U.S. economy continues to recover from the recent recession and as the population grows. Specifically, I find that the reform would, if passed immediately, increase GDP relative to baseline by 5.4 percentage points over the next decade, while creating 6.8 million jobs." (John W. Diamond, "The Economic Effects Of The Romney Tax Plan," Rice University, 8/3/12)

Columbia University's Glenn Hubbard: "The Romney Approach Will Restore Confidence In America's Economic Future And Make America Once Again A Place To Invest And Grow." (Glenn Hubbard, Op-Ed, "The Romney Plan For Economic Recovery," The Wall Street Journal, 8/1/12)

And President Obama's Tax Plan? Higher Taxes On The Middle Class And Job Creators, With Fewer Good-Paying Jobs For American Workers:

President Obama's Second-Term Tax Plan Will Hike Taxes On Small-Businesses And Jeopardize 710,000 Jobs. "Researchers determined the plan would actually subject 2.1 million business owners to higher rates; specifically, those who pay pass-through taxes, like most partnerships, LLCs and S-Corporations. The result, less capital in the hands of business owners and diminished labor supply, would cost the United States an estimated $200 billion in economic output and 710,000 jobs." (J.D. Harrison, "Obama Plan To Lift Top Tax Rates Would Plague Millions Of Small Businesses, Study Warns," The Washington Post, 7/17/12)

•         President Obama's Plan "Would Hurt Small-Business Job Creators In Particular." "New research, released today by the National Federation of Independent Business, shows that allowing tax relief on the top individual rates to expire will hurt job creation and the economy. The report, published by top accounting firm Ernst & Young, shows raising top individual rates would hurt small-business job creators in particular." (NFIB, Press Release, 7/17/12)

The American Enterprise Institute Has Calculated That The Annual Cost Of President Obama's Current And Looming Debt Burden Amounts To $4,000 Per Year In Higher Taxes On The Middle Class. "In a new paper, AEI's Matt Jensen looks at the real annual cost of servicing the debt for households at various levels of income — including a potentially higher tax burden. As the table below illustrates, a household making between $100,000 and $200,000 a year could find its tax liability higher by roughly $2,400 every year. Over ten years, that works out to $24,000. And when you add in the debt already accrued the past four years under President Obama (the second table), that's another $1,600 a year. So now we are now talking about $4,000 a year, $40,000 over ten years." (James Pethokoukis, "Study: Obama's Big Budget Deficits Could Mean A $4,000 A Year Middle-Class Tax Hike," American Enterprise Institute, 10/2/12)

A Nonpartisan Study From The National Federation Of Independent Business Determined The Obama Plan Will Shrink The Economy By 1.3 Percent. "The study ... finds that over time the economy would be 1.3 percent smaller and there would be 710,000 fewer jobs. More than 72 percent of S corporation income is earned by the half-million S corporation owners who pay the top two rates. Increasing individual rates directly impacts small businesses organized as S corporations, partnerships, LLCs and sole proprietors, also known as 'pass-through' businesses. NFIB research shows around 75 percent of all small businesses are organized in such a manner." (NFIB, Press Release, 7/17/12)

Under President Obama's Plan, Small Businesses Will See Their Taxes Increase To As High As 41%. "But Mr. Obama is demanding tax increases, not tax cuts, and large increases at that. If the Bush tax rates expire as scheduled on December 31, rates on the top two income brackets will jump to 39.6% from 35%, and 36% from 33%. Add the scheduled return of income phaseouts for exemptions and deductions, and the rates go up another two-percentage points—to at least 41% and 35%." (Editorial, "Off The Tax Cliff He Goes," The Wall Street Journal, 7/9/12)

Mitt Romney, Press Release: The Big Choice: Pro-Growth Reforms Vs. Job-Destroying Tax Hikes Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/303534

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