Rudy Giuliani has come out with his tax plan in an effort to glamor up his Conservative credentials. Problem is, I’ve heard the plan or something resembling it before. Then I got to thinking, where?

It is Fred Thompson’s plan on a diet.

Rudy’s plan sounds great on paper, the problem is that it took someone else to come out with it first. Let’s take a look.

From Reuters, Rudy’s plan for Corporate taxes:

Republican U.S. presidential hopeful Rudy Giuliani has proposed what he called a multitrillion-dollar tax cut that would trim the corporate tax rate from 35 percent to 25 percent and cut the capital gains tax from 15 percent to 10 percent.

Fred’s plan for Corporate taxes:

Reduce the Corporate Tax Rate. The United States has one of the highest rates of tax on businesses of the industrialized nations, second only to Japan. EvenJapan is currently considering reducing its corporate tax rate. Economic studies suggest that the U.S. Treasury is actually losing tax revenue by keeping the corporate tax rate so high. In order to increase the competitiveness of U.S. companies in the global marketplace, the Thompson plan would reduce the U.S. top corporate tax rate (including the corporate capital gains tax rate) from 35 percent to no more than 27 percent, which is the approximate average of the world’s leading economies & the nations of the Organization on Economic Cooperation and Development. This tax reduction will promote U.S. competitiveness, encourage companies to keep their operations (and jobs) in the U.S., and spur continued economic expansion and growth. SOURCE

The report on Rudy’s plan via Reuters is a summary of Fred’s plan with an additional 2% reduction in the tax. And then Fred says, “from 35 percent to no more than 27 percent.” Rudy’s plan calls for a definitive 25% rate on Corporations.

Rudy’s simplified personal tax proposals via Reuters:

The proposal, unveiled by the campaign on Wednesday, would preserve the 2001 and 2003 tax cuts enacted by President George W. Bush, eliminate the estate tax and give taxpayers the option of choosing a simplified tax form with three tax brackets with a maximum bracket of 30 percent.

Giuliani proposed a simplified, one-page tax form that would reduced the current six income brackets to three with a 30 percent top rate.

Hmmm, that too sounds a bit familiar. What does Fred’s plan say?

Permanently Extend the 2001 and 2003 Tax Cuts. Tax relief enacted in 2001 and 2003 has proved critical to generating a strong economy that has experienced growth despite the war on terror, the collapse in the housing market, and other economic challenges over the last six years. Unless action is taken, every American taxpayer will see a massive tax increase after December 31, 2010. Allowing this tax hike will impose an enormous financial burden on American families, slow economic growth, cost America jobs, and make it more difficult to address the country’s long-term budget, economic, and security challenges. The Thompson plan ensures the following:

* Reduced individual income tax rates, saving every tax-paying family a minimum of $600.
* Preserving the $1000 child tax credit, which was doubled from $500 per child.
* Protecting Marriage penalty relief.
* Retaining Education tax incentives, including Coverdell Education Savings Accounts, 529 college savingsplans, and deductions for higher education expenses.

* Reduced tax rates on capital gains and qualified dividends.
* Increased expensing of investment for small businesses.

Expand Taxpayer Choice. The Thompson plan would give Americans greater choice about how to pay their federal taxes. This plan is based on a proposal developed by the House of Representatives Republican Study Committee that would provide taxpayers the option of remaining under the current, complex tax code or opting for a simplified, flat tax code. The simplified tax code would contain two tax rates: 10% for joint filers on income of up to $100,000 ($50,000 for singles) and 25% on income above these amounts. The standard deduction would be more than doubled to $25,000 for joint filers and $12,500 for singles. The personal exemption amount would be increased to $3,500. Therefore, a family of 4 would be exempt from income tax on the first $39,000 of income. The simplified tax code would contain no other tax credits or deductions. It would also retain the 15% tax rate on capital gains and dividends. This approach would dramatically simplify taxes for tens of millions of Americans. In addition, the larger standard deduction and personal exemption amounts will still provide significant tax relief to families with children. This proposal would serve as a stepping-stone to fundamental tax reform.

Again, Rudy’s plan sounds familiar but lacking detail. Fred is including detail! Imagine that!

What about the death tax?

Rudy:

“Giuliani’s tax plan makes all the Bush tax cuts permanent, including full repeal of the death tax,” the former New York City mayor’s campaign said in an appeal to fiscal conservatives.

The most telling part of the quote is the qualifier, “… the former New York City mayor’s campaign said in an appeal to fiscal conservatives.”

So what did Fred say?

Permanently Repeal the Death Tax. Current law provides death tax relief, but only through 2010. The death tax is inherently unfair. Under the Thompson Plan, the death tax would be permanently repealed, thus protecting millions of American families, including small business owners and family farmers, from double taxation at rates ranging as high as 55 percent.

Again, sounds like someone jumping on someone else’s plan, trying to make it their own, take credit for being an innovator, and not succeeding. Rudy’s poll numbers from yesterday are down to 9%.

How about the Alternative Minimum Tax (ATM)?

Rudy:

One feature would index the alternative minimum tax to inflation and eventually repeal it, the statement said.

The alternative minimum tax was enacted in 1969 to ensure that the very wealthy had to pay some taxes, but because of the effects of inflation, the tax now threatens to ensnare millions of middle-income families.

That too sounds awful familiar. Now mind you Fred’s plan came out months ago.

Repeal the Alternative Minimum Tax. The AMT is a separate tax system that was intended to ensure that a few high income Americans could not use deductions and credits to eliminate their tax liability. However, because the AMT is not indexed to inflation, it is penalizing Americans it was never intended to affect. While in the U.S. Senate, Fred Thompson authored legislation that would have repealed the AMT. Consistent with that earlier proposal, the Thompson plan will eliminate the AMT as part of broader tax and spending reform. Until comprehensive reform is feasible, the Thompson plan would index the exemption amounts annually so that millions of middle class families will not become subject to this tax.

What about the Capital Gains and Dividend taxes?

Rudy:

The proposed capital gains cut would boost the value of 401(k) and IRA retiree savings and investment plans, the statement said, while another feature would replace current tax-advantaged savings accounts with a simplified system.

Fred:

It would also retain the 15% tax rate on capital gains and dividends. This approach would dramatically simplify taxes for tens of millions of Americans.

What about small business concerns (Tax Rates and Depreciation Schedules)?

Rudy:

No mention

Fred:

Permanently Extend Small Business Expensing. Small businesses create two-thirds of all new jobs in America, and employ nearly 59 million Americans — more than half of the nation’s private-sector workforce. Women own a quarter of all small businesses, minorities are nearing the 20% mark, and Hispanic Americans are opening their own businesses at a rate three times the national average. Current law allows small businesses to write-off purchases of equipment of up to $125,000 per year, rather than depreciating those assets over time. Making expensing of equipment and other small business items permanent will encourage greater investment and growth.

Update and Simplify Depreciation Schedules. The current depreciation schedules are outdated and in many cases do not reflect the realistic useful life of an asset. This is particularly true for investments in high technology. For example, computers must be depreciated over three years, even though they become obsolete in half that time. The Thompson plan would simplify and update these schedules to allow American businesses to make the investments they need to compete and create more high-quality jobs.

Why does Rudy find it necessary to “borrow” a plan from a real Conservative? Because he has become a master of Clintonian politics. He is saying whatever he needs to say to sway Conservatives onto his bandwagon. Problem #1, he’s polling at 9% AFTER releasing his plan. Conservatives understand that Rudy is pro-abortion, pro-gay marriage, pro-illegal alien, and anti-gun. We’re not stupid Rudy. You can’t pander to us.

I’ve said it before and I’ll say it again, if you want to vote for a Clinton there is one running in this election. IN THE OTHER PARTY!

If you want what is best for this country vote for a true, proven, Conservative…

Bookmark and Share

Close Bookmark and Share This Page

Save to Browser Favorites / Bookmarks

Ask backflip blinklist BlogBookmark Bloglines BlogMarks Blogsvine BuddyMarks BUMPzee! CiteULike co.mments Connotea del.icio.us

Digg diigo DotNetKicks DropJack dzone Facebook Fark Faves Feed Me Links Friendsite folkd.com Furl Google

Hugg Jamespot Jeqq Kaboodle kirtsy linkaGoGo LinkedIn LinksMarker Ma.gnolia Mister Wong Mixx MySpace MyWeb

Netvouz Newsvine oneview OnlyWire PlugIM Propeller Reddit Rojo Segnalo Shoutwire Simpy Slashdot Sphere

Sphinn Spurl Squidoo StumbleUpon Technorati ThisNext Twitter Webride Windows Live Worlds Movies Yahoo!

Email This to a Friend

Copy HTML: 

 If you like this then please subscribe to the RSS Feed.

Powered by Bookmarkify™

More »