Politics
Election 2012: A win for Obama could cost Romney $5M in personal taxes
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 percent on about US$790,000 in income in 2011. Under his plan, that would climb to 28 percent. Under Romney’s plan, it drops to 18 percent.
The difference: US$248,000 vs. US$158,000.
ROMNEY
Assuming inflation-adjusted earnings of US$23 million, he’d pay an effective rate of 34 percent under the Obama plan. That drops to 13 percent under Romney’s own tax proposal, even lower than the 15 percent he estimated for 2011, which irritated critics who felt a multimillionaire investor should shoulder a higher rate than middle-class working families.
The difference between the two candidates’ plans: paying the taxman US$7.8 million vs. US$3 million.
The figures were based on Obama’s 2011 tax return and Romney’s 2010 return. Romney has filed for an extension and released only preliminary 2011 numbers.
