Taxes: Romney May Owe $5M More If Obama Wins

by Christopher Freeburn | June 4, 2012 11:45 am

A loss to President Barrack Obama in November’s election could cost GOP presidential candidate Mitt Romney a lot more than just the White House.

It could cost him almost $5 million.

Or at least, Romney might have to pay that much more in taxes[1] if Obama wins re-election and manages to push his tax plan through Congress, according to the Associated Press.

If Obama loses in November, and Romney enacts his stated tax plans, the former president could see a $90,000 tax windfall.

The estimates for tax savings and costs stem from analyses produced by Citizens for Tax Justice and the Tax Foundation, which lean left and right, respectively. The groups found that under Obama’s announced tax plans, both he and Romney would be hit with increased taxes.

Both would benefit under Romney’s proposals, though the amount of that benefit varies depending on which tax exemptions Romney might ultimately eliminate.

Analysts say that the tax plans offered by each candidate differ most strikingly when it comes to the wealthy. Obama would increase taxes for the highest-earners and impose the Buffett rule, which would mandate a minimum tax for the very rich[2].

Romney says he would lower everyone’s taxes by 20%, producing the largest tax savings among those making the most money. He would also eliminate the alternative minimum tax, which hits a larger slice of taxpayers every year.

In order to make up for diminished tax revenue, Romney says he will cut the federal budget by $500 billion per year and eliminate unspecified tax breaks and exemptions.

Of course, no matter which candidate wins in November, getting a tax plan through Congress will be no easy feat. Any tax reform plan ultimately passed – by either candidate – will only vaguely resemble campaign stump promises.

The opinions contained in this column are solely those of the writer.

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Endnotes:
  1. might have to pay that much more in taxes: http://hosted.ap.org/dynamic/stories/U/US_PRESIDENTIAL_CAMPAIGN_TAXING_THEMSELVES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-06-04-04-16-36
  2. mandate a minimum tax for the very rich: http://investorplace.com/2012/04/3-things-to-know-about-the-buffett-rule/
  3. letters@investorplace.com: mailto:letters@investorplace.com

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