Top Earners Poised to Reap Tax Cuts in Republican Hopefuls Plans

[Purveyor]

The detailed tax plans from Republican presidential candidates would provide tax cuts for the highest earners with those from Rick Perry and Jon Huntsman offering the biggest benefits. Mitt Romney’s proposal, which suggests fewer changes, would benefit middle-and lower-income families more than his rivals’ would.

On the surface, the 9-9-9 tax plan of Herman Cain would lead to the biggest tax cuts at the top of the income scale and the largest tax increases at the bottom. Analyzing the Cain plan is difficult because he also eliminates the payroll tax and imposes a 9 percent business tax and a 9 percent national sales tax, both of which tax consumption rather than income.

For families between the extremes, the differences separating the candidates’ tax positions are less dramatic and depend more on the circumstances of individual households. For example, Perry’s flat 20 percent tax could mean higher taxes for upper-income families who would pay a marginal rate of 14 percent under Huntsman, though the Texas governor would continue the mortgage interest deduction.

“These plans won’t just affect the rich,” said Kathy Pickering, executive director of the Tax Institute, the research and analysis arm of H&R Block Inc.. (HRB) “They’re going to have a direct effect on the bottom lines of every American.”

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http://www.bloomberg.com/news/2011-11-15/wealthy-households-face-lower-tax-burdens-under-republican-candidate-plans.html

[SpiralHawk]

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