Romney and Obama on taxes

A look at where Obama and Romney stand on taxes

Associated Press
In Iowa, Obama to make pitch on tax cuts
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President Barack Obama speaks in the East Room of the White House in Washington, Monday, July 9, 2012. Facing sagging jobs numbers, President Barack Obama seeks to recast the election as a debate over tax fairness, calling for a temporary tax cut extension but just for low and middle income earners. The president’s pitch is aimed at painting Mitt Romney as a protector of the rich while ramping up questions about the Republican challenger’s own wealth. (AP Photo/Susan Walsh)

A look at where Democratic President Barack Obama and Republican challenger Mitt Romney stand on taxes:

OBAMA:

Wants to raise taxes on the wealthy and ensure they pay 30 percent of their income at minimum. Supports extending Bush-era tax cuts for everyone making up to $200,000, or $250,000 for couples, but in 2010, agreed to a two-year extension of the lower rates for all. Wants to let the top two tax rates go back up 3 to 4 points to 39.6 percent and 36 percent, and raise rates on capital gains and dividends for the wealthy. Health care law provides for tax on highest-value health insurance plans. Together with Congress, he built a first-term record of significant tax cuts for families and business, some temporary. Proposes tax breaks for U.S. manufacturers producing domestically or repatriating jobs from abroad, and tax penalties for U.S. companies outsourcing jobs.

ROMNEY:

Proposes permanent extension of Bush-era tax cuts for all income levels and dropping all tax rates by 20 percent, bringing the top rate, for example, down to 28 percent from 35 percent and the lowest rate to 8 percent instead of 10 percent. Wants to curtail deductions, credits and exemptions for the wealthiest. Also end Alternative Minimum Tax for individuals, eliminate capital gains tax for families making below $200,000 and cut corporate tax to 25 percent from 35 percent. Does not specify which tax breaks or programs he would curtail to help cover costs.

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