...
Republican political adviser Karl Rove said tax reform could be a key
element of former Massachusetts Gov. Mitt Romney's pitch to U.S. voters.
...
Romney ... needs to give voters reasons to vote for him and not simply
against U.S. President Barack Obama. ... The presidential campaign,
Rove said, "is mostly about Obama but Romney will make a big mistake if he
doesn't understand that at the end of the day it's got to be about him, too.
..."People have a sense that the tax code is complicated, unfair, expensive
to live by, and if you've got a smart ... accountant, you can get around
it," Rove said.
2-4-8 Response
Wealth and Romney Tax Reform
"Romney said this week he wants to overhaul the U.S.
tax system ..." and his plans to reverse the growing income and wealth gap
will be the make or break issue of the campaign.
Consider that Mr. Romney pays the federal government
15% of his gross income; Mr. Obama pays 20% but my working class neighbors
pay about 28% (when you include the combined 14% state and the payroll tax that does not
apply to most of the Obama or Romney income). My neighbors have a little
envy for the elite who are asked to pay the AMT – not because of their
success but rather do to their payroll tax holiday above $110,000 – (a
fairness issue omitted from the article).
Comprehensive tax reform for both individuals and
business and a new standard in tax fairness can be described in one
sentence:
Tax individual and corporate income at a flat 8% rate
(with no deductions, credits or loopholes), tax individual net wealth at 2%
(excluding $15,000 cash and retirement funds) and impose a 4% Value Added
Sales Tax (VAT) on business.
The low tax rates will produce about $500 billion more
than current federal revenue with no need for AMT, payroll, estate, and
capital gains taxes or deferral of foreign income.
Mr. Obama reportedly is worth $5,000,000 and Mr. Romney
at least $200,000,000. Under the 2-4-8 Tax Blend Mr. Obama would pay $5,000
more in taxes and Mr. Romney would pay about $2,500,000 more. The middle
class would only pay an 8% income tax plus 2% of net wealth over $15,000
(i.e. equity in a house but not retirement funds).
Sound fair Mr. Romney or is your wealth worth more than
the election?
Eugene Patrick Devany, JD, MPA
www.TaxNetWealth.com
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