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How the corporate tax plans stack up

Here is how President Obama's corporate tax proposal compares with the platforms of the four GOP candidates and a GOP House leader.

By MSN Money Partner Feb 22, 2012 8:25PM

This post is from The Associated Press.

 

Here is a comparison of corporate tax proposals by President Barack Obama, House Ways and Means Committee Chairman Dave Camp, R-Mich., and GOP presidential hopefuls Mitt Romney, Rick Santorum, Newt Gingrich and Ron Paul.

 

The information was compiled from the Treasury Department, House Ways and Means Committee, Tax Policy Center and campaign websites.

 

Corporate income tax rate

  • Obama: Reduce top tax rate from 35% to 28%.
  • Camp: Reduce to 25%.
  • Romney: Reduce to 25%.
  • Santorum: Reduce to 17.5%.
  • Gingrich: Reduce to 12.5%.
  • Paul: Repeal 16th Amendment to the Constitution, stripping Congress of the power to levy income taxes.

(Post continues after video.)

Incentives

  • Obama: Reduce top rate for manufacturers to 25%.
  • Camp: Eliminate unspecified preferences.
  • Romney: Create temporary investment tax credit, extend write-offs for capital expenditures.
  • Santorum: Eliminate corporate income tax for manufacturers.
  • Gingrich: Full write-offs of capital expenditures.
  • Paul: No specifics.

International taxes

  • Obama: Keep U.S. system of worldwide taxation, with an unspecified minimum tax on foreign earnings.
  • Camp: Exempt 95% of foreign earnings from U.S. taxation.
  • Romney: Transition to territorial system that does not tax foreign profits.
  • Santorum: Tax foreign profits returned to the United States at 5.25%; eliminate the tax if the income is invested in plants and equipment.
  • Paul: Allow foreign profits to be returned to United States tax-free.
  • Gingrich: No specifics.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

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1Comment
Feb 27, 2012 7:50PM
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Most businesses in America are proprietorships, taxed under the ordinary personal income tax regime.  Historically, the top corporate tax rate was comparable to the top personal rate.  Therefore there was no adverse tax advantage to proprietorships from corporations.  Will top personal rates be reduced to compare to reduced corporate rates?  By the way, a great portion of the "rich" in this country are business proprietors.
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