Manhattan Institute for Policy Research.
search  
 
Subscribe   Subscribe   MI on Facebook Find us on Twitter Find us on Instagram      
 
 
   
 
     
 

National Review Online

 

Romney and Taxes (No, Not His, Yours)

April 16, 2012

By Nicole Gelinas

If any of you are struggling or have struggled with figuring your capital-gains and dividends taxes this season, it’s worth remembering that Mitt Romney says he would eliminate capital-gains, dividends, and interest taxes for families earning under $200,000 in adjusted gross income (most people).

This idea is solid. It would encourage people to save and invest outside of their 401(k)s and IRAs, a necessity when the country faces a retirement crisis.

Gutting taxes on all forms of saving and investment would avoid distortions in the marketplace, too. By contrast, a plan that favored, say, dividends over interest would distort the marketplace by pushing people toward one type of savings and investment over another.

In fact, this plan would eliminate one big distortion. Right now, families can book up to $500,000 in tax-free capital gains on a house, but not on a stock portfolio.

Moreover, this plan would also reduce another regressive tax: payments to third parties for tax preparation. Capital gains and dividends are one of the most complex areas of tax preparation middle-class Americans will face.

Finally, the plan would maintain the introduce a progressive tax system on investment taxes without raising taxes on the wealthy. Romney would keep the 15 percent tax rate on dividends and capital gains for wealthier earners. This approach seems fair.

Original Source: http://www.nationalreview.com/corner/296099/romney-and-taxes-no-not-his-yours-nicole-gelinas

 

 
PRINTER FRIENDLY
 
LATEST FROM OUR SCHOLARS

How France Finally Bowed to the Global Economy
Nicole Gelinas, 08-24-15

America's Health Care-Cost Slowdown Goes Kaput
Paul Howard, 08-22-15

'We Believe the Children,' by Richard Beck
Kay S. Hymowitz, 08-21-15

EPA's Methane Policy: Trivial for the Planet and Terrible for the Economy
Mark P. Mills, 08-21-15

Making Medicaid Work: Dentists For The Poor
Howard Husock, 08-20-15

Should Consumers Care How Amazon Treats Its Employees?
Ben Boychuk,
Joel Mathis, 08-20-15

Trump-Loving Republicans Are Living In A Crazy Dream
Ben Boychuk, 08-20-15

Obama's Wind-Energy Lobby Gets Blown Away
Robert Bryce, 08-19-15

 
 
 

The Manhattan Institute, a 501(c)(3), is a think tank whose mission is to develop and disseminate new ideas
that foster greater economic choice and individual responsibility.

Copyright © 2015 Manhattan Institute for Policy Research, Inc. All rights reserved.

52 Vanderbilt Avenue, New York, N.Y. 10017
phone (212) 599-7000 / fax (212) 599-3494