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Howard Gleckman, Urban Institute senior resident fellow, breaks down the GOP candidates' tax plans and talks about the 2012 elections.
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Well and the race to become of their party's nominee each of the top three GOP candidates have released tax plans with some very unique ideas the urban institute.
Has crunched the numbers for each and joining me now with the results -- -- -- he's senior fellow.
For the urban institute also editor of the tax block attacks box and Howard.
I think what was -- this way.
Let's go through each candidate.
Talk about the pros and cons and that's how give an overall rate for the plan let's Begin when Newt Gingrich's plan.
OK -- -- ago -- good job so so.
What everybody -- doing just they would everybody's got in common -- everybody's everybody extends the bush tax cuts.
Everybody he repeals the estate tax so that's what everybody does after that -- the -- that's a good start right.
Well I you know if you figure out some way to pay for all about get so so let reality though detail how they're different.
So let's start with Gingrich.
The main thing he does in this is a very -- usual proposal.
-- he gives you a choice.
He says -- extend the bush tax cuts you can pay taxes under the current tax law.
Or if you want to you can pay taxes under this new system -- -- create where everybody -- of that rate of flat rate of 15%.
No deductions no exclusion his pay 15%.
And you get to pick which one you -- Problem -- that is because you get to pick everybody's gonna maximize there -- tax benefits and it cost a lot of money.
We estimate that that the Tax Policy -- we estimate that is -- increase.
The deficit by one point three trillion dollars in one year alone just -- -- 2015.
So cost big money.
-- it reduces taxes a lot gives everybody an opportune and I would say I'll ala carte pricing and taxes that taxes just don't seem like -- whatever go together.
Probably not such a good idea.
So Mitt Romney.
-- a very different idea what he would do.
Is he would he would basically keep the current system we have.
He would reduce all tax rates by 20% across the board so if you're currently paying 35828.
-- -- currently paying ten you pay.
He would offset that with some.
Elimination of some tax preferences but he doesn't say which ones.
And that's that's kind of Dicey if you get worried about about the budget deficit.
All -- -- let me jump in -- to -- good Mitt Romney has come under some -- criticism too because there's a portion of his plan.
That's similar to current democratic tax plans.
If I mean do you get the sense -- these Chinese ways some of the anger and animosity out there toward the rich.
Well I think what he's trying to do is he's trying to have he's trying to be as close to the status quo is he possibly can.
Without proposing really really big tax cuts that he can't really pay for.
On the other hand he needs to do something to keep the base happy though I think what you're talking about the really controversial thing in his proposal.
Is -- Gingrich and Santorum would basically eliminate capital gains taxes.
Romney would keep the -- 15% capital gains rate for people making more than 200000 dollars a year.
He reduced the rate to zero for people making less than two -- thousand dollars a year.
Deal with that those people making less than 200000 dollars don't have a lot of capital right right sort of a -- point let's -- -- sandstorm.
So santorum's proposal is -- instead of cutting tax rates across the board like Ronnie -- -- giving an alternative like Gingrich would.
He says I'm they have to attach -- it's not quite a flat tax but there's gonna be to tax rates a 10% rate at a 28% rate.
Capital gains rates would be 12%.
Lower than they are now same rate for everybody -- reduce the corporate income tax interestingly enough.
Cut in half for all businesses except manufacturing.
Manufacturing manufacturing repaid -- 0% rate.
Yeah I guess there -- that -- who do you think that that would running down at thirty seconds a lot of the things pretty obviously from a political point of view.
That that that manufacturing just in time for the Michigan primary.
Overall grades and likelihood that any of these could actually ever truly be implemented -- So the chances of any -- happening is about zero even if the Republicans win the senate they're not gonna win by enough to get any kind of a huge tax cut passed.
The best I can do for any of these guys is to give -- complete.
-- -- not tell me how they're gonna pay for it by if I gotta give -- they're probably won't get -- and are really impressed with anybody's.
-- days -- a pretty far Howard -- -- thanks well I appreciate it sure good to talk you.
