Your Income

You are

Single Married

Number of
Dependents

0

Your annual
gross income

$1000000
$10,000
$500,000
$1,000,000
50% of Americans earn your income or less 2% Share of Federal Taxes
paid for by people with
this income or less

Your Taxes

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
under each plan

$3,605 $3,605 $3,605

Candidate vs Current

Compared to the current tax structure, how much more or less you will save.

Taxes (% of Income)

How much of a bite
your federal taxes takes
out of your income
under each plan.

Candidate Tax Brackets

The 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%

HOW THE TAX PLANS AFFECT THE BUDGET

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.

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Methodology: To put it mildly, the tax code is complicated. To simplify this analysis of federal income taxes we have made the following assumptions:
  • Filers claim the standard deduction.
  • All plans are effective in the same tax year.
  • We do not allow tax credits to exceed income taxes. We have also excluded the impact of certain tax provisions, including but not limited to: social security, medicare, payroll taxes, state taxes (including any consequent impact on federal taxes) and the Alternative Minimum Tax (or AMT). For the Romney plan, we have included the impact of the elimination of the expanded refundability of the Child-Tax Credit, and the earned income tax credit (EITC). This infographic is intended for information purposes only.
Sources: Internal Revenue Service, Tax Foundation, Tax Policy Center, Obama for America, Romney for President, Inc., Bloomberg BNA, The Committee for a Responsible Federal Budget, whitehouse.gov, Joint Committee on Taxation, Congressional Research Service.

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