You are |
![]() |
![]() |
Number of
|
|
Both Obama and Romney have big plans for your taxes but no one knows exactly when (or if) the winning candidate’s proposed tax plan will take effect. We also note that Romney's tax plan is somewhat incomplete, as he has not fully detailed which programs he plans to cut to fund his proposal. For purely indicative purposes, SmartAsset built a model to see what would happen if the plans went into effect right now:
OBAMA | Current Tax Structure |
Romney | |
---|---|---|---|
Your Federal tax bill
|
$3,605 | $3,605 | $3,605 |
Candidate vs CurrentCompared to the current tax structure, how much more or less you will save. |
|||
Taxes (% of Income)How much of a biteyour federal taxes takes out of your income under each plan. |
|||
Candidate Tax BracketsThe brackets determine how much of your income is taxed at different levels. Each bracket only applies to the income made between the range specified. The highest bracket applicable to your income is also called your ‘marginal’ tax rate. The marginal rate tells you the tax rate applied for each extra dollar of income you make. |
|||
OBAMA |
Current Tax Structure |
Romney | |
$0–$17,400 | 10.0% | 10.0% | 8.0% |
$17,400–$70,700 | 15.0% | 15% | 12.0% |
$70,700–$142,700 | 25.0% | 25.0% | 20.0% |
$142,700–$217,450 | 28.0% | 28.0% | 22.4% |
$217,450–$250,000 | 33.0% | 33.0% | 26.4% |
$250,000–$388,350 | 36.0% | 33.0% | 26.4% |
Over $388,350 | 39.6% | 35.0% | 28.0% |
President Obama’s plan proposes largely keeping the current tax structure, but with an increase to those making $250,000 per year or more. Obama’s plan translates to a projected federal annual revenue increase of about $860 billion over 10 years.
Governor Romney’s plan includes a 20% tax-cut across the board. The tax-cuts are stated to be revenue neutral, funded by the elimination of certain tax credits and preferences. The broad tax-cut, excluding the impact of tax credit / preference reform, is reported to decrease Federal revenue by approximately $2.8 trillion over 10 years.
SmartAsset provides answers to your important financial questions. We recommend specific strategies and illustrate all of your options, so you can make smarter decisions.