GIULIANI'S TAX PLAN
January 16, 2008
Presidential candidate Rudy Giuliani's new tax plan would chop about $6 trillion from projected static revenues over a 10-year period beginning in 2009, says the Washington Times.
- Beyond making the Bush tax cuts permanent and permanently indexing the Alternative Minimum Tax (AMT) for inflation, Giuliani proposes to reduce the top capital gains and dividend tax rate from today's level of 15 percent to 10 percent.
- In addition, capital gains realized after the Giuliani plan goes into effect would be indexed for inflation.
- Giuliani would also establish tax-free personal savings accounts and reduce the top corporate income-tax rate from 35 percent to 25 percent.
- The Giuliani plan would also create a fair and simple tax (FAST) system and a one-page IRS-filing form as an alternative option.
- The FAST form would apply three tax rates to taxable income: 10 percent up to $40,000, 15 percent between $40,000 and $150,000 and 30 percent above $150,000.
While not offering a standard deduction, the FAST system would retain the $1,000 child tax credit and the most popular itemized deductions, including mortgage interest, state and local taxes and charitable contributions, as well as a "health-care exemption" up to $15,000 for families that purchase health insurance on the private market.
Source: Editorial, "Giuliani's tax plan," Washington Times, January 15, 2008.
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