Politics
Election 2012:Obama vs Romney – what each candidate stands for
Taxes
Obama: Said he had cut taxes “for those who need it,” middle-class families and small businesses. But he said he didn’t believe another round of tax cuts for millionaires would create jobs or bring down the deficit. Said he wants to reform the tax code to make it simpler and fairer while asking wealthy households to pay higher taxes on incomes above US$250,000, the same rate as when Bill Clinton was president. Referring to efforts to come up with a deficit reduction plan, he said he was open to compromise with Republicans but would refuse to go along with the idea, promoted by Romney and his allies in Congress, that the deficit could be lowered by spending trillions more on new tax breaks for the wealthy. He said he would refuse to ask middle-class families to give up deductions for owning a home or raising children, or ask students to pay more for college, or reduce health care benefits, to pay for another tax cut for millionaires.
Romney: Criticized Obama for his plan to raise taxes on small businesses. Said efforts to scale back the Bush-era tax cuts for the wealthy would result in small businesses being forced to turn over more of their income to the government. He said taxes that small businesses pay should be reduced rather than raised. He also pledged not to raise taxes on the middle class. Said the Obama administration refuses to agree to an extension of the Bush-era tax cuts for all Americans.
Obama: Said he would use a combination of spending cuts and tax increases on those making more than US$250,000 to reduce the deficit. Said his plan would cut future deficits by US$4 trillion. He said he is eager to reach a deficit-cutting agreement based on principles of a bipartisan commission, known as Simpson-Bowles.
Romney: Criticized Obama for excessive spending but did not provide any specifics in his acceptance speech about which programs he would eliminate or cut. Said he would cap spending at 20 percent of the country’s gross domestic product and would ask a simple question about every federal program: Is it worth borrowing money from China to pay for it?
