Articles on Politics

Did 1.2 Million People "Drop Out of the Labor Force"?

2012-02-04T12:07:00.001-05:00

Did 1.2 Million People "Drop Out of the Labor Force"?

Summary

It is being said that 1.2 million people "dropped out of the labor force" between December 2011 and January 2012.

Each year, the Census Bureau updates their population estimates. For January 2012, the Bureau of Labor Statistics used these adjusted population estimates instead of the estimates they used December 2011. If these adjustments were applied to December, they would have caused the estimated size of the "persons not in the labor force" to increase by 1.252 million.

In other words, 1.2 million people (1.177 million) did not "drop out of the labor force" between December and January. The changes to the population estimates increased the numbers by 1.252 million, so actually about 75,000 people entered the labor force (1.177 million - 1.252 million = 75,000.)

Updated Population Estimates Cause Higher Numbers

According to the Bureau of Labor Statistics:

Effective with data for January 2012, updated population estimates which reflect the results of Census 2010 have been used in the household survey. Population estimates for the household survey are developed by the U.S. Census Bureau. Each year, the Census Bureau updates the estimates to reflect new information and assumptions about the growth of the population during the decade.

...

In accordance with usual practice, BLS will not revise the official household survey estimates for December 2011 and earlier months.

http://www.bls.gov/news.release/empsit.nr0.htm

The Bureau of Labor Statistics (BLS) uses population estimates from the U.S. Census Bureau to calculate their data. If the population estimates increase, then so will the estimates of data, such as the number of unemployed or the "persons not in the labor force." Since the BLS data for January 2012 uses the updated population estimates, it will naturally be higher than the December 2011 data, which uses previous population estimates.

According to the BLS, that is what happened:

The adjustment increased the estimated size of the civilian noninstitutional population in December by 1,510,000, the civilian labor force by 258,000, employment by 216,000, unemployment by 42,000, and persons not in the labor force by 1,252,000.

http://www.bls.gov/news.release/empsit.nr0.htm

If the December 2011 BLS data had used the updated population estimates that were used for the January 2012 data, the number of "persons not in the labor force" would have been 1.252 million higher than previously reported.

The Numbers When Population Increases Are Ignored

Since the published BLS data for January 2012 and December 2011 use different population estimates, they cannot be accurately compared directly to each other. They should be adjusted for the different population estimates.

According to the Bureau of Labor Statistics:

(Numbers in thousands)

Category	December to January change as published	2012 population control effect	December to January changes after removing population control effect
Civilian noninstitutional population	1,685	1,510	175
Civilian labor force	508	258	250
Not in labor force	1,177	1,252	-75

http://www.bls.gov/news.release/empsit.nr0.htm

The amount of people who "dropped out of the labor force" between December and January was published to be 1.177 million, (or 1.2 million rounded.) However, the number of persons "not in labor force" for December would have been 1.252 million higher if December used the same population estimate as January.

When this is taken into effect, the number of persons "not in the labor force" actually decreased by about 75,000 people. In other words, people did not "drop out of the labor force." About 75,000 entered the labor force between December and January.

Also, it should be noted the population estimates increased all numbers for January relative to December:

(Numbers in thousands)

Category	December to January change as published	2012 population control effect	December to January changes after removing population control effect
Employed	847	216	631
Unemployed	-339	42	-381
Unemployment rate	-.2	.0	-.2

http://www.bls.gov/news.release/empsit.nr0.htm

The number of unemployed actually decreased by more than published, but the number of employed actually increased by less than published. Thus, the actual unemployment rate is roughly the same as published.

Link to this article:

http://articlesonpolitics.blogspot.com/2012/02/why-12-million-people-dropped-out-of.html

Why Perry, Gingrich, Huntsman and Santorum Are Not on the Virginia Ballot

2012-01-14T18:17:00.002-05:00

Why Perry, Gingrich, Huntsman and Santorum Are Not on the Virginia Ballot

Summary

On January 13, 2012, the Court denied a request, by Rick Perry and other candidates, to order the placement of their names on the Republican primary ballot in Virginia. The decision was made by Judge John A. Gibney, Jr. of the Richmond Division of the United States District Court for the Eastern District of Virginia.

The original lawsuit was filed by Rick Perry. Newt Gingrich, Rick Santorum and Jon Huntsman also later intervened.

Virginia requires 10,000 valid signatures for a candidate to be placed on the ballot. The petitions can only be circulated by Virginia residents. Perry, Gingrich, Huntsman and Santorum did not have the required number of valid signatures by the deadline of December 22, 2011.

All of them submitted fewer than 10,000 total signatures, except possibly Gingrich, who claims to have submitted 11,050.

Judge Gibney believed it would likely be declared unconstitutional to require the petitions to be circulated by Virginia residents, but he did not think the 10,000 signature requirement was unconstitutional. He denied their request to be placed on the ballot because he felt the candidates should have filed suit earlier and the Court would have ordered the Board of Elections to not enforce the residency requirement. Then the candidates would have still been able to meet the 10,000 signature requirement before the deadline.

Basically they waited too long to file suit about the residency requirement, and now it’s too late for them to collect the 10,000 signatures to get themselves on the ballot before the January 21 deadline for absentee ballots to be mailed. It's even too late for them to revise the absentee ballot in time to meet their deadline.

Virginia's 10,000 Signature Requirement

Candidates must file a petition "signed by at least 10,000 qualified voters, including at least 400 qualified voters from each congressional district in the Commonwealth."

Code of Virginia § 24.2-545(B)

The deadline to file the petitions with the State Board of Elections was December 22, 2011.

Rick Perry filed petitions with fewer than 10,000 signatures.

Newt Gingrich claimed to have filed 11,050 signatures. Virginia State Board of Elections stated that fewer than 10,000 were valid, but they didn't know the precise number of signatures.

Jon Huntsman did not file any petitions because he didn't have the 10,000 signatures.

Rick Santorum says he submitted more than 8,000 signatures, but he claims his petitions were denied because they didn't have 10,000 total signatures.

Generally, candidates try to collect more than the required number of signatures, in case some of the signatures are invalid. Newt Gingrich is the only one who might have collected more than 10,000 total signatures. The rest of the candidates collected fewer than 10,000 signatures.

The candidates complained that the 10,000 signature requirement is unconstitutional as unreasonably burdensome. Also, they complained that they couldn't get the 10,000 signatures because of Virginia's residency requirement.

Virginia's Residency Requirement

According to the Virginia State Board of Elections, the person who circulates the petition must sign an affidavit at the bottom the petition:

(i) My resident address is ____

(ii) I am, or I am eligible to be, a registered and qualified voter in Virginia in the County/City of ____

(iii) I am, or eligible to be, qualified to vote for the office for which this petition is circulated

(iv) I personally witnessed the signature of each person who signed this page or its reverse side.

http://www.sbe.virginia.gov/cms/documents/20120306SBE-545_letter.pdf

Basically the petition circulators must be Virginia residents.

The candidates claim they could have met the 10,000 signature requirement if they had been able to use non-residents to circulate petitions in Virginia.

Joe Allbaugh, the national campaign chair for Rick Perry, testified that Perry has thousands of out-of-state volunteers lined up to circulate petitions in Virginia.

Blake Harris, the ballot access coordinator for the Huntsman campaign, testified that buses of college students from Washington, D.C. were available as petition circulators.

Mark Tate, the Virginia ballot access coordinator for Santorum for President, listed five individuals who collected signatures in Virginia that were unable to be counted because of the residency restriction.

Judge Gibney's Findings

http://docs.justia.com/cases/federal/appellate-courts/ca4/12-1042/12/

The Court believes that the residency requirements for petition circulators will likely be declared unconstitutional, and the plaintiffs will ultimately prevail. (p. 18)

The Court finds that the plaintiffs are not likely to prevail on their challenge to the 10,000 signature requirement. The Court, therefore, cannot fashion relief that does not include compliance with the 10,000 signature requirement. (p. 20)

Had the case been timely filed, the Court would have ordered the defendants not to enforce the residency requirement for petition circulators, and the plaintiffs could have tried, with the expanded pool of campaign workers, to get the 10,000 signatures. (p. 22)

The plaintiffs have waited too long to file, and the doctrine of laches bars their claim. The Commonwealth is far along in the electoral process. The primary election is so close that the plaintiffs cannot gather the requisite signatures to get on the ballot. (p. 22)

The hearing was January 13. Virginia’s primary is March 6. That is 53 days later. Is the election too close that the plaintiffs cannot gather the rest of their signatures in time to get on the ballot?

The answer lies with absentee ballots.

Absentee Ballots

Judge Gibney noted:

To comply with federal law, absentee ballots must be distributed on or before January 21, 2012. (p. 11)

According to the Uniformed and Overseas Citizens Absentee Voting Act, 42 U.S.C. §1973ff-1(a)(8)(A), absentee ballots must be mailed “at least 45 days before an election for Federal Office, not later than 45 days before the election.”

The Virginia primary is March 6. 45 days before that day is January 21. This hearing was on January 13.

Don Palmer, the Secretary of the State Board of Elections, testified that "as of this date, absentee ballots cannot be prepared before they must be available." (p. 11)

Calculate Your Income Tax Under the GOP Candidates' Plans

2011-12-17T15:49:00.000-05:00

Calculate Your Income Tax Under the GOP Candidates' Plans

Use this calculator to find out how much income tax you would pay under the tax plans of Newt Gingrich, Jon Huntsman, Rick Perry or Ron Paul. Simply fill in your 2011 income and filing status and click the "Calculate" button to see the results. You may also claim your spouse, children or other deductions by filling in the respective fields.

Enter your values for the 2011 tax year

Income:

Spouse
Number of Children:

Mortgage Interest:
State and Local Taxes:
Charitable Contributions:
Capital Gains and Dividends:

Filing Status:

Single
Married filing jointly
Married filing separately
Head of household (with qualifying person)
Qualifying widow(er) with dependent child

Results

Newt Gingrich:

Rick Perry:

Ron Paul:

Jon Huntsman:

Michele Bachmann, Gary Johnson, Mitt Romney, Rick Santorum do not have specific enough plans to calculate.

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/calculate-your-income-tax-under-gop.html

The Republican Candidates Individual Income Tax Plans

2011-12-13T23:04:00.001-05:00

The Republican Candidates Individual Income Tax Plans

Michele Bachmann

We need to reduce the number of tax brackets.

http://www.michelebachmann.com/issues/americanjobsrightnow/

It appears to be the closest to Jon Huntsman’s plan. Although she never mentions eliminating any deductions and credits.

Newt Gingrich

Newt Gingrich’s individual income tax plan is a 15 percent optional flat tax with some deductions and credits.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-newt-gingrichs-individual.html

Jon Huntsman

Jon Huntsman’s individual income tax plan eliminates all deductions and credits (besides the standard deduction and exemption) and reduces the marginal tax rates to 8, 14 and 23 percent.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-jon-huntsmans-individual.html

Gary Johnson

Simplify the tax code; stop using it to reward special interests and control behavior.

http://www.garyjohnson2012.com/issues/economy-and-taxes

Mitt Romney

Pursue a conservative overhaul of the tax system over the long term that includes lower, flatter rates on a broader base.

http://www.mittromney.com/jobs/tax

Ron Paul

Ron Paul’s individual income tax plan is eliminating the individual income tax.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-ron-pauls-individual-income.html

Rick Perry

Rick Perry’s individual income tax plan is a 20 percent optional flat tax with a few deductions.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-rick-perrys-individual.html

Rick Santorum

Rick Santorum’s individual income tax plan is:

Cut the number of tax rates to 2 rates - 10% and 28%
Triple the personal deduction for each child
Eliminate marriage tax penalties
Retain deductions for charitable giving, home mortgage interest, healthcare, retirement savings, and children

http://www.ricksantorum.com/pressrelease/santorum-releases-made-america-plan-revitalize-us-economy.

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/republican-candidates-individual-income.html

Republican Candidate’s Effective Individual Income Tax Rates

2011-12-13T22:08:00.001-05:00

Republican Candidate’s Effective Individual Income Tax Rates

Summary

For singles, Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

For married couples with no children, Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit. Although, both Ron Paul and Newt Gingrich have a 0 percent rate between $20,000 and $40,000 ($60,000 if they take all the deductions.)

As far as married couples with children, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $70,000 to $80,000 (depending on family size), after which Ron Paul has the lower rates.

For those who only take the standard deduction, Newt has the lowest rates for those below around $55,000 to $70,000, and Ron Paul has the lowest rates for those above. Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

Ron Paul

Ron Paul’s plan is simple. It eliminates the income tax, so everybody pays a 0 percent rate.

Rick Perry

To calculate the taxes under Rick Perry’s plan, the income was subtracted by the $12,500 standard exemption ($25,000 for married couples and $12,500 per dependent or child.) For those who itemize, the average mortgage interest, state and local taxes and charitable contribution deductions were taken from the IRS statistics for 2009. Those with the standard deduction only deducted state and local taxes. The remainder is the taxable income, which was multiplied by 20 percent to get the total tax.

Here are the effective 2010 tax rates for those who only take the standard exemption and deduct the average state and local taxes:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	0.00%	4.29%	9.32%	11.71%	13.06%	13.90%	14.77%	15.07%	15.62%	15.28%	16.39%	17.34%	17.83%
	0	0.00%	0.00%	0.99%	5.46%	8.06%	9.73%	11.20%	11.95%	12.84%	12.78%	15.14%	16.84%	17.58%
married	1	0.00%	0.00%	0.00%	0.00%	3.06%	5.57%	7.63%	8.82%	10.06%	10.28%	13.89%	16.34%	17.33%
filing	2	0.00%	0.00%	0.00%	0.00%	0.00%	1.40%	4.06%	5.70%	7.29%	7.78%	12.64%	15.84%	17.08%
jointly	3	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.49%	2.57%	4.51%	5.28%	11.39%	15.34%	16.83%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	0.00%	0.00%	2.42%	6.08%	8.41%	9.69%	11.16%	11.61%	12.54%	11.83%	13.57%	15.38%	16.32%
	0	0.00%	0.00%	0.00%	0.00%	3.41%	5.52%	7.59%	8.48%	9.76%	9.33%	12.32%	14.88%	16.07%
married	1	0.00%	0.00%	0.00%	0.00%	0.00%	1.35%	4.02%	5.36%	6.99%	6.83%	11.07%	14.38%	15.82%
filing	2	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.45%	2.23%	4.21%	4.33%	9.82%	13.88%	15.57%
jointly	3	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.43%	1.83%	8.57%	13.38%	15.32%

Newt Gingrich

To calculate the taxes under Newt Gingrich’s plan, the income was subtracted by the $12,000 personal deduction ($48,000 for married couples.) For those who itemize, the average mortgage interest and charitable contribution deductions were taken from the IRS statistics for 2009 (which is the latest version.) The remainder is the taxable income, which was multiplied by 15 percent to get the total tax. Then the Child Tax Credit and Earned Income Tax Credit were subtracted from the tax, where applicable.

Here are the effective 2010 tax rates for those who only take the standard personal deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	-2.60%	6.00%	9.00%	10.50%	11.40%	12.00%	12.43%	12.75%	13.00%	13.20%	14.10%	14.64%	14.82%
	0	-4.50%	0.00%	0.00%	0.00%	0.60%	3.00%	4.71%	6.00%	7.00%	7.80%	11.40%	13.56%	14.28%
married	1	-30.50%	-15.25%	-5.60%	-0.20%	0.00%	1.33%	3.29%	4.75%	5.89%	6.80%	11.40%	13.56%	14.28%
filing	2	-40.10%	-25.15%	-10.77%	-2.80%	0.00%	0.00%	1.86%	3.50%	4.78%	5.80%	11.40%	13.56%	14.28%
jointly	3	-45.10%	-28.30%	-12.87%	-4.38%	0.00%	0.00%	0.43%	2.25%	3.67%	4.80%	11.40%	13.56%	14.28%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	-2.60%	0.00%	3.83%	6.28%	7.91%	8.84%	9.72%	10.15%	10.69%	10.61%	11.99%	13.17%	13.69%
	0	-4.50%	0.00%	0.00%	0.00%	0.00%	0.00%	2.01%	3.40%	4.69%	5.21%	9.29%	12.09%	13.15%
married	1	-30.50%	-15.25%	-5.60%	-0.20%	0.00%	0.00%	0.58%	2.15%	3.58%	4.21%	9.29%	12.09%	13.15%
filing	2	-40.10%	-25.15%	-10.77%	-2.80%	0.00%	0.00%	0.00%	0.90%	2.47%	3.21%	9.29%	12.09%	13.15%
jointly	3	-45.10%	-28.30%	-12.87%	-4.38%	0.00%	0.00%	0.00%	0.00%	1.36%	2.21%	9.29%	12.09%	13.15%

Jon Huntsman

To calculate the taxes under Jon Huntsman’s plan for 2010, the income was subtracted by a $3,650 exemption for the individual, spouse and children. Then it is subtracted by the standard deduction, which is $5,700 for singles and $11,400 for married filing jointly. The result is the taxable income. The tax brackets shown in the previous sections were used to calculate the tax. The first $34,000 ($68,000 for married) of taxable is taxed at 8 percent. After that, the taxable income is taxed at 14 percent, if there is any, and so on according to the rates.

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	0.52%	4.26%	5.51%	6.13%	7.30%	8.42%	9.22%	9.81%	10.28%	10.65%	13.17%	19.07%	21.03%
	0	0.00%	0.52%	3.01%	4.26%	5.01%	5.51%	5.86%	6.13%	6.56%	7.30%	10.65%	17.56%	20.28%
married	1	0.00%	0.00%	2.04%	3.53%	4.42%	5.02%	5.45%	5.77%	6.01%	6.79%	10.40%	17.39%	20.19%
filing	2	0.00%	0.00%	1.07%	2.80%	3.84%	4.53%	5.03%	5.40%	5.69%	6.28%	10.14%	17.22%	20.11%
jointly	3	0.00%	0.00%	0.09%	2.07%	3.26%	4.05%	4.61%	5.04%	5.36%	5.77%	9.88%	17.05%	20.03%

Comparison of All the Effective Rates

Here are the numbers in charts:

Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

Besides Ron Paul, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates up until around $20,000. After that it is Rick Perry until around $40,000. After that it is Jon Huntsman until the income is into the six figures when it becomes Newt Gingrich again.

However, for those who only take the standard deduction it is Newt until $15,000. Then it is all Jon Huntsman until the income is in the six figures when it becomes Newt again.

Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

Besides Ron Paul, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates the whole time.

For those who only take the standard deduction, Newt is still the lowest, except between $80,000 and $200,000 when Jon Huntsman has the lowest rates.

For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $70,000. Ron Paul has the lower rates above $70,000.

For those who only take the standard deduction, Newt has the lowest rates for those below around $55,000, and Ron Paul has the lowest rates for those above. Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:

For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $75,000. Ron Paul has the lower rates above $75,000.

For those who only take the standard deduction, Newt has the lowest rates for those below around $60,000, and Ron Paul has the lowest rates for those above. Again, Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:

For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $80,000, after which Ron Paul has the lower rates.

For those who only take the standard deduction, Newt has the lowest rates for those below around $70,000, and Ron Paul has the lowest rates for those above. Again, Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/effective-tax-rates-for-all-plans.html

Analysis of Jon Huntsman’s Individual Income Tax Plan

2011-12-09T20:44:00.001-05:00

Analysis of Jon Huntsman’s Individual Income Tax Plan

Summary

The plan eliminates all deductions and credits and reduces the tax rates to 8, 14 and 23 percent. As with the other flat/flatter tax plans, this gives huge tax breaks to those with high incomes, while those with low incomes lose money. In between, benefits increase as income increases and family size decreases.

The plan is one version of The Zero Plan from the Simpson-Bowles Fiscal Commission.
It reduces the number of marginal tax rates from 6 to 3.
It also lowers the rates to 8, 14 and 23 percent.
However, these lower rates don’t necessarily result in a tax cut because the plan also eliminates all deductions, exemptions and credits.
Families rely on tax credits, deductions and exemptions to significantly reduce their taxes.
Lower income households receive tax credits, such as the Earned Income Tax Credit, which give them extra money, even if they don’t pay any income tax.
A family of 5 with a $20,000 income loses over $8,000 under the plan.
Basically, the plan benefits those who use very few deductions, credits and exemptions, such as a single individual taking only the standard deduction.
Families with children tend to lose money because they have available tax credits, deductions and exemptions.
Those who currently itemize their deductions don't gain as much.
Higher income taxpayers receive large tax cuts, regardless of family size or deductions.
Tax cuts get smaller as family size increases and income decreases.

What is Jon Huntsman’s Individual Income Tax Plan?

Here is how Huntsman describes his plan:

Gov. Huntsman supports a version of the plan crafted by the Fiscal Commission, headed by Erskine Bowles and Alan Simpson, commonly known as the "zero plan". Rather than nibble around the edges of the existing tax code, he will introduce a revenue-neutral plan that eliminates all deductions and credits in favor of three drastically lower rates of 8%, 14% and 23%.

http://www.jon2012.com/issues/jobs-economy-tax-reform

Huntsman uses the Simpson-Bowles tax plan, specifically The Zero Plan which eliminates all deductions and credits. This plan replaces the 10 and 15 percent brackets with an 8 percent bracket; the 25 and 28 percent brackets with a 14 percent; and the 33 and 35 percent brackets with a 23 percent bracket.

These are the current 2010 tax rates:

Tax Rate	Single	Married filing jointly or qualifying widow/widower	Married filing separately	Head of household
10%	Up to $8,375	Up to $16,750	Up to $8,375	Up to $11,950
15%	$8,376 - $34,000	$16,751 - $68,000	$8,376 - $34,000	$11,951 - $45,550
25%	$34,001 - $82,400	$68,001 - $137,300	$34,001 - $68,650	$45,551 - $117,650
28%	$82,401 -$171,850	$137,301 - $209,250	$68,651 - $104,625	$117,651 - $190,550
33%	$171,851 – $373,650	$209,251 - $373,650	$104,626 - $186,825	$190,551 - $373,650
35%	$373,651 or more	$373,651 or more	$186,826 or more	$373,651 or more

These are the 2010 tax rates as they would have been under Huntsman's plan:

Tax Rate	Single	Married filing jointly or qualifying widow/widower	Married filing separately	Head of household
8%	Up to $34,000	Up to $68,000	Up to $34,000	Up to $45,550
14%	$34,001 - $171,850	$68,001 - $209,250	$34,001 - $104,625	$45,551 - $190,550
23%	$171,851 or more	$209,251 or more	$104,626 or more	$190,551 or more

These are marginal rates. This means different portions of the total income are charged different rates. For example, a single person making $100,000 is not taxed at 14 percent (which would be $14,000 in taxes.) Their first $34,000 is taxed at 8 percent ($2,720.) Their next $66,000 is taxed at 14 percent ($9,240.) So their total tax is only $11,960, which is 11.96 percent instead of 14 percent.

How much do people pay under Jon Huntsman’s Plan?

To calculate the taxes under Jon Huntsman’s plan for 2010, the income was subtracted by a $3,650 exemption for the individual, spouse and children. Then it is subtracted by the standard deduction, which is $5,700 for singles and $11,400 for married filing jointly. The result is the taxable income. The tax brackets shown in the previous sections were used to calculate the tax. The first $34,000 ($68,000 for married) of taxable is taxed at 8 percent. After that, the taxable income is taxed at 14 percent, if there is any, and so on according to the rates.

Here is how much people would have paid under Jon Huntsman’s income tax plan in 2010:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($52)	($852)	($1,652)	($2,452)	($3,651)	($5,051)	($6,451)	($7,851)	($9,251)	($10,651)	($26,343)	($95,343)	($210,343)
	0	$0	($104)	($904)	($1,704)	($2,504)	($3,304)	($4,104)	($4,904)	($5,902)	($7,302)	($21,302)	($87,787)	($202,787)
married	1	$0	$0	($612)	($1,412)	($2,212)	($3,012)	($3,812)	($4,612)	($5,412)	($6,791)	($20,791)	($86,947)	($201,947)
filing	2	$0	$0	($320)	($1,120)	($1,920)	($2,720)	($3,520)	($4,320)	($5,120)	($6,280)	($20,280)	($86,108)	($201,108)
jointly	3	$0	$0	($28)	($828)	($1,628)	($2,428)	($3,228)	($4,028)	($4,828)	($5,769)	($19,769)	($85,268)	($200,268)

Red and in parenthesis means they pay taxes. Otherwise, they receive a refund in the amount shown.

Basically those who earn less than the standard deduction and exemption pay $0 in taxes. For single individuals, it is slightly less than $10,000. For families it's around between $20,000 and $30,000 depending on the number of children.

Other than that, the best gauge of the rates is to compare them wiht the current tax code.

How Does Jon Huntsman’s Plan Compare to the Current Tax Code?

The 2010 taxes under the current tax code are calculated using only the standard deduction and personal exemptions. The Child Tax Credit and Earned Income Tax Credit were taken where possible. For those who itemize deductions, the average total itemized deductions from the IRS statistics for 2009 (which is the latest version) were used instead of the standard deduction.

Here is how much people would have gained under Huntsman’s income tax plan in 2010 if they only took the standard deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($249)	$331	$1,031	$1,731	$2,699	$3,799	$4,899	$5,999	$7,099	$8,447	$21,688	$54,028	$114,028
	0	($457)	$27	$229	$657	$1,357	$2,057	$2,757	$3,357	$3,992	$4,892	$17,706	$50,977	$110,977
married	1	($4,050)	($4,050)	($2,525)	($681)	$102	$802	$1,502	$2,102	$2,602	$3,490	$17,195	$50,539	$110,539
filing	2	($5,060)	($7,036)	($5,149)	($2,843)	($1,154)	($454)	$246	$846	$1,346	$2,089	$16,684	$50,393	$110,101
jointly	3	($5,561)	($8,216)	($6,854)	($4,546)	($2,409)	($1,709)	($1,009)	($409)	$91	$687	$16,644	$51,232	$109,663

Red numbers in parenthesis means they lose money under Jon Huntsman’s plan.

Here are the gains for those who also itemize their deductions at the average rate:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($315)	($818)	($522)	$51	$352	$312	$1,412	$1,874	$2,974	$2,374	$8,030	$20,494	$55,432
	0	($457)	($104)	($166)	($121)	$322	$820	$1,520	$1,737	$2,039	$919	$6,583	$19,437	$54,375
married	1	($4,050)	($4,050)	($2,920)	($1,277)	($933)	($436)	$264	$482	$982	($117)	$6,072	$18,999	$53,937
filing	2	($5,060)	($7,036)	($5,546)	($3,393)	($2,189)	($1,691)	($991)	($774)	($274)	($1,154)	$5,652	$19,078	$53,499
jointly	3	($5,561)	($8,216)	($6,890)	($5,096)	($3,280)	($2,947)	($2,247)	($2,029)	($1,529)	($2,190)	$5,250	$19,917	$53,061

Here are the numbers in a chart:

This is why the chart doesn't include $200,000 and above:

As with most flat taxes, the higher income taxpayers receive large tax cuts, and the lower income taxpayers lose money. However, for the single individuals and married couples with no children, as their income increases to around $20,000 and above they receive a tax cut, if they currently only take the standard deduction. The tax cuts grow larger as their income increases.

Although, if they currently itemize their deductions, the income level where they begin to get tax cuts is closer to $40,000 to $50,000.

Lower income families lose thousands of dollars because they don't receive refundable tax credits, like the Earned Income Tax Credit and the Child Tax Credit, which gives them refunds even when they pay no tax. That is why a family of 5 with a $20,000 income loses over $8,000 under the plan.

The Child Tax Credit is $1,000 per child, so a family with 3 children and an income of $80,000 still loses money, if they take the standard deduction. If they itemize at the average rate, they are losing money even at $100,000.

Basically, the plan benefits those who use very few deductions, credits and exemptions, such as a single individual taking only the standard deduction. Families with children tend to lose money because they have available tax credits, such as the Child Tax Credit and the Earned Income Credit. Those who currently itemize their deductions don't gain as much. The higher income taxpayers receive large tax cuts, and the tax cuts get smaller as family size increases and income decreases.

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-jon-huntsmans-individual.html

Analysis of Rick Perry’s Individual Income Tax Plan

2011-12-09T19:55:00.001-05:00

Analysis of Rick Perry’s Individual Income Tax Plan

Summary

Rick Perry’s individual income tax plan is a 20 percent optional flat tax with a few deductions. Wealthy taxpayers will see huge tax cuts. Lower income taxpayers will pay the same. In between, some will gain depending on family size and current amount of deductions.

It is an optional 20 percent flat tax.
There is a $12,500 standard exemption for individuals and their dependents.
It allows for the deduction of mortgage interest, charitable contributions, and state and local taxes.
Wealthy taxpayers receive huge tax cuts under the plan.
Low income taxpayers receive little or no tax cuts.
In between, some will gain depending on family size and current amount of deductions.
Married couples with children, who take all the deductions, may reach $50,000 to $80,000 without paying any tax, depending on family size and deductions.
The flat tax is still progressive because of the exemptions and deductions, especially the $12,500 standard exemption.
Anyone can deduct charitable contributions. This could lead to an increase in deductions for charitable contributions and possibly more people donating to charity.

What is Rick Perry’s Individual Income Tax Plan?

Rick Perry’s tax plan is an optional 20 percent flat tax. Like most flat taxes, he exempts income near the poverty threshold.

Lower- and middle-income families will be able to take advantage of an optional 20% flat tax rate that includes generous standard exemptions of $12,500 for individuals and their dependents, as well as deductions for mortgage interest, charitable contributions, and state and local taxes.

http://www.rickperry.org/cut-balance-and-grow-html/

A single individual gets a $12,500 exemption. It appears that a married couple receives a $25,000 exemption, and families exempt $12,500 for each of their dependent children. That means a married couple with 2 children and an income at $50,000, or below, is paying $0 tax.

The plan also provides the option to deduct mortgage interest, charitable donations and state and local taxes.

After that, the leftover income is taxed at a flat 20 percent rate.

How much do people pay under Rick Perry’s Plan?

To calculate the taxes under Rick Perry’s plan, the income was subtracted by the $12,500 standard exemption ($25,000 for married couples and $12,500 per dependent or child.) For those who itemize, the average mortgage interest, state and local taxes and charitable contribution deductions were taken from the IRS statistics for 2009. Those with the standard deduction only deducted state and local taxes. The remainder is the taxable income, which was multiplied by 20 percent to get the total tax.

Here is how much people pay under Perry’s income tax plan in 2010 if they only took the standard exemption and the state and local tax deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	$0	($858)	($2,796)	($4,685)	($6,531)	($8,340)	($10,340)	($12,057)	($14,057)	($15,279)	($32,774)	($86,706)	($178,313)
	0	$0	$0	($296)	($2,185)	($4,031)	($5,840)	($7,840)	($9,557)	($11,557)	($12,779)	($30,274)	($84,206)	($175,813)
married	1	$0	$0	$0	$0	($1,531)	($3,340)	($5,340)	($7,057)	($9,057)	($10,279)	($27,774)	($81,706)	($173,313)
filing	2	$0	$0	$0	$0	$0	($840)	($2,840)	($4,557)	($6,557)	($7,779)	($25,274)	($79,206)	($170,813)
jointly	3	$0	$0	$0	$0	$0	$0	($340)	($2,057)	($4,057)	($5,279)	($22,774)	($76,706)	($168,313)

Red and in parenthesis means they pay taxes. Otherwise, they receive a refund in the amount shown.

Here is how much people pay under Perry’s income tax plan in 2010 if they deduct mortgage interest, charitable contributions and state and local taxes (at the average rate):

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	$0	$0	($726)	($2,432)	($4,207)	($5,812)	($7,812)	($9,287)	($11,287)	($11,830)	($27,145)	($76,887)	($163,185)
	0	$0	$0	$0	$0	($1,707)	($3,312)	($5,312)	($6,787)	($8,787)	($9,330)	($24,645)	($74,387)	($160,685)
married	1	$0	$0	$0	$0	$0	($812)	($2,812)	($4,287)	($6,287)	($6,830)	($22,145)	($71,887)	($158,185)
filing	2	$0	$0	$0	$0	$0	$0	($312)	($1,787)	($3,787)	($4,330)	($19,645)	($69,387)	($155,685)
jointly	3	$0	$0	$0	$0	$0	$0	$0	$0	($1,287)	($1,830)	($17,145)	($66,887)	($153,185)

In the first table, it shows how the standard exemption allows some taxpayers to avoid paying income tax. In the second table, it shows how the mortgage interest and charitable contribution deductions allow even more taxpayers to avoid paying taxes.

How Does Rick Perry’s Plan Compare to the Current Tax Code?

Here is how much people would have gained under Perry’s income tax in 2010 if they only took the standard deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($197)	$325	($113)	($502)	($181)	$510	$1,010	$1,793	$2,293	$3,819	$15,257	$62,665	$146,058
	0	($457)	$131	$837	$176	($170)	($479)	($979)	($1,296)	($1,663)	($585)	$8,734	$54,557	$137,950
married	1	($4,050)	($4,050)	($1,913)	$731	$783	$474	($26)	($343)	($1,043)	$2	$10,212	$55,780	$139,173
filing	2	($5,060)	($7,036)	($4,829)	($1,723)	$766	$1,426	$926	$609	($91)	$590	$11,690	$57,294	$140,395
jointly	3	($5,561)	($8,216)	($6,826)	($3,718)	($781)	$719	$1,879	$1,562	$862	$1,177	$13,639	$59,794	$141,618

Red numbers in parenthesis means they lose money.

Here are the gains for those who also itemize their deductions at the average rate:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($263)	$34	$404	$71	($204)	($449)	$51	$438	$938	$1,195	$7,228	$38,950	$102,590
	0	($457)	$0	$738	$1,583	$1,119	$812	$312	($146)	($846)	($1,109)	$3,240	$32,836	$96,476
married	1	($4,050)	($4,050)	($2,308)	$135	$1,279	$1,764	$1,264	$807	$107	($156)	$4,718	$34,059	$97,699
filing	2	($5,060)	($7,036)	($5,226)	($2,273)	($269)	$1,029	$2,217	$1,759	$1,059	$796	$6,287	$35,798	$98,921
jointly	3	($5,561)	($8,216)	($6,862)	($4,268)	($1,652)	($519)	$981	$1,999	$2,012	$1,749	$7,874	$38,298	$100,144

Let’s look at the numbers in a chart:

This is why the chart doesn't include $200,000 and above:

The most important thing to note is that this tax is optional, so nobody has to lose any money. As with most flat taxes, the wealthy get huge tax cuts, and the lower income taxpayers lose money. The numbers are all over the place, so it’s hard to see the pattern. The pattern is this: There are 3 major reasons that cause people to lose money (or not gain because it’s optional) under this plan.

The first major reason is that the plan does not include the Earned Income Tax Credit and the Child Tax Credit. These credits are refundable, which means the taxpayer gets more back than they paid. That is why most of the lower income taxpayers lose money under the plan, despite not owing any tax. They can’t take those tax credits anymore.

The next major reason is the exemptions and deductions. Under the plan, the first $12,500 is exempt from taxes. This exemption applies to the spouse and children, so a family of 5 doesn’t pay tax on their first $62,500. On top of that they can deduct mortgage interest, taxes and charitable contributions, so that family of 5 won’t start paying taxes until they make over $80,000. Once their income is high enough to pay taxes on it, they slowly lose the benefits because of the third major reason.
The third major reason is the 20 percent tax rate. For most taxpayers, a 20 percent flat tax is a tax increase. However, as described above, the plan allows them to exempt and deduct enough that the tax increase becomes a tax cut. As the income increases the tax increases overcome the deductions and the taxpayer loses money. This happens sooner for those who only take the standard deduction. Eventually, as the income increases, the 20 percent flat tax becomes a tax cut, and it continues to be a tax cut.

The 20 Percent Flat Tax is Still Progressive

Here are the effective 2010 tax rates for those who only take the standard exemption and deduct the average state and local taxes:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	0.00%	4.29%	9.32%	11.71%	13.06%	13.90%	14.77%	15.07%	15.62%	15.28%	16.39%	17.34%	17.83%
	0	0.00%	0.00%	0.99%	5.46%	8.06%	9.73%	11.20%	11.95%	12.84%	12.78%	15.14%	16.84%	17.58%
married	1	0.00%	0.00%	0.00%	0.00%	3.06%	5.57%	7.63%	8.82%	10.06%	10.28%	13.89%	16.34%	17.33%
filing	2	0.00%	0.00%	0.00%	0.00%	0.00%	1.40%	4.06%	5.70%	7.29%	7.78%	12.64%	15.84%	17.08%
jointly	3	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.49%	2.57%	4.51%	5.28%	11.39%	15.34%	16.83%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	0.00%	0.00%	2.42%	6.08%	8.41%	9.69%	11.16%	11.61%	12.54%	11.83%	13.57%	15.38%	16.32%
	0	0.00%	0.00%	0.00%	0.00%	3.41%	5.52%	7.59%	8.48%	9.76%	9.33%	12.32%	14.88%	16.07%
married	1	0.00%	0.00%	0.00%	0.00%	0.00%	1.35%	4.02%	5.36%	6.99%	6.83%	11.07%	14.38%	15.82%
filing	2	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.45%	2.23%	4.21%	4.33%	9.82%	13.88%	15.57%
jointly	3	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.43%	1.83%	8.57%	13.38%	15.32%

As with most of the flat taxes, this tax is not actually flat. It is progressive mostly because of the $12,500 standard exemption.

More Deductions of Charitable Contributions (and Possibly More Charitable Contributions)

There is an interesting difference here between this and the current tax code. Under the current tax code, the choice is between the standard deduction and itemized deductions, so a taxpayer can only deduct something if their itemized deductions are more than the standard deduction (typically that means they have a mortgage or large medical bills.) Under this plan, anyone can deduct charitable contributions.

This could lead to more people deducting their charitable contributions, and it may lead to more people giving to charity.

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-rick-perrys-individual.html

Analysis of Ron Paul’s Individual Income Tax Plan

2011-12-09T19:25:00.001-05:00

Analysis of Ron Paul’s Individual Income Tax Plan

Summary

Ron Paul proposes eliminating the individual income tax. This will give huge tax breaks to the wealthy and middle income taxpayers. However, this could end up costing lower income households thousands of dollars.

Nobody pays any income tax.
Ron Paul’s plan is actually similar to the other flat tax proposals.
It gives huge tax breaks to the wealthy.
It takes thousands of dollars away from lower income households because they lose refundable tax credits, like the Earned Income Tax Credit and the Child Tax Credit, which give refunds to those who pay no tax.
A family of 5 with an income of $20,000 would lose over $8,000 in refundable tax credits.
Besides that, everyone else receives large tax breaks. They get larger as income increases and family size decreases.

What is Ron Paul’s Individual Income Tax Plan?

Ron Paul's tax plan is to eliminate the income tax:

As President, Ron Paul will support a Liberty Amendment to the Constitution to abolish the income and death taxes. And he will be proud to be the one who finally turns off the lights at the IRS for good.

http://www.ronpaul2012.com/the-issues/taxes/

On the surface, it seems simple. However there are a few issues worth mentioning.

How much do people pay under Ron Paul’s Plan?

The income tax is eliminated, so everybody pays $0.

How Does Ron Paul’s Plan Compare to the Current Tax Code?

The 2010 taxes under the current tax code are calculated using only the standard deduction and personal exemptions. The Child Tax Credit and Earned Income Tax Credit were taken where possible. For those who itemize deductions, the average total itemized deductions from the IRS statistics for 2009 (which is the latest version) were used instead of the standard deduction.

Here is how much people would have gained under Ron Paul’s income tax plan in 2010 if they only took the standard deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($197)	$1,183	$2,683	$4,183	$6,350	$8,850	$11,350	$13,850	$16,350	$19,098	$48,031	$149,371	$324,371
	0	($457)	$131	$1,133	$2,361	$3,861	$5,361	$6,861	$8,261	$9,894	$12,194	$39,008	$138,763	$313,763
married	1	($4,050)	($4,050)	($1,913)	$731	$2,314	$3,814	$5,314	$6,714	$8,014	$10,281	$37,986	$137,486	$312,486
filing	2	($5,060)	($7,036)	($4,829)	($1,723)	$766	$2,266	$3,766	$5,166	$6,466	$8,369	$36,964	$136,500	$311,208
jointly	3	($5,561)	($8,216)	($6,826)	($3,718)	($781)	$719	$2,219	$3,619	$4,919	$6,456	$36,413	$136,500	$309,931

Red numbers in parenthesis means they lose money under Ron Paul’s plan.

Here are the gains for those who also itemize their deductions at the average rate:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($263)	$34	$1,130	$2,503	$4,003	$5,363	$7,863	$9,725	$12,225	$13,025	$34,373	$115,837	$265,775
	0	($457)	$0	$738	$1,583	$2,826	$4,124	$5,624	$6,641	$7,941	$8,221	$27,885	$107,223	$257,161
married	1	($4,050)	($4,050)	($2,308)	$135	$1,279	$2,576	$4,076	$5,094	$6,394	$6,674	$26,863	$105,946	$255,884
filing	2	($5,060)	($7,036)	($5,226)	($2,273)	($269)	$1,029	$2,529	$3,546	$4,846	$5,126	$25,932	$105,185	$254,606
jointly	3	($5,561)	($8,216)	($6,862)	($4,268)	($1,652)	($519)	$981	$1,999	$3,299	$3,579	$25,019	$105,185	$253,329

Let’s look at the numbers in a chart:

This is why the chart doesn't include $200,000 and above:

Looking at both ends it seems very similar to the other plans. It gives huge tax cuts to the rich, and ends up costing the poor more money. The reason the poor lose so much money under Ron Paul’s plan is they currently receive refundable tax credits. In other words, they get money back even when they don’t pay taxes. The Earned Income Tax Credit and the Child Tax Credit give these households as refund check worth thousands of dollars.

Unique Features of the Plan

As previously mentioned, no income tax means eliminating taxes for a lot of people, but it also eliminates the refundable tax credits, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC.) These credits provide refunds to those who already don't pay any income tax, especially lower income families. Low income families can usually eliminate their taxable income through exemption, deductions and credits.

After that, they rely on the EITC and the CTC to give them a refund. A large family can receive thousands of dollars in refunds. As shown in the tables, a family of 5 with a $20,000 income receives over $8,000 in refundable tax credits. They lose that money under Ron Paul's plan.

It's not just low income families. The EITC is typically for those near the poverty threshold, but the Child Tax Credit is available to middle income families. A family gets $1,000 per child in tax credits. If that family is able to reduce their tax to below $0 through that credit and other deductions, credits, exemptions, etc., they can get a refund for that amount. That is why a family with 3 children and an income of $60,000, who itemizes their deductions at the average rate for 2009, still loses over $500 under Ron Paul's plan.

It's not unusual. Most flat tax plans tend to ignore the EITC and the CTC.

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-ron-pauls-individual-income.html

Analysis of Newt Gingrich’s Individual Income Tax Plan

2011-12-09T19:03:00.001-05:00

Analysis of Newt Gingrich’s Individual Income Tax Plan

Summary

Newt’s individual income tax plan is a 15 percent optional flat tax with some deductions and credits. Wealthy taxpayers will see huge tax cuts. Lower income tax payers will pay roughly the same. In between, the taxes decrease as income increases and family size decreases. Most families will receive a net tax refund.

It is an optional 15 percent flat tax.
There is a $12,000 personal deduction per adult.
A married couple can deduct $48,000.
Mortgage interest and charitable contributions can also be deducted.
It keeps the Earned Income Tax Credit and $1,000 Child Tax Credit.
Wealthy taxpayers receive huge tax cuts under the plan.
Low income taxpayers receive little or no tax cuts.
In between, tax cuts get larger as income increases and/or family size decreases.
Very few taxpayers lose money under the plan compared to the current tax code. When they do, it is less than $20.
Married couples, who currently itemize their deductions, may reach $60,000 to $80,000 without paying any tax, depending on family size and deductions. If they have children, they will also get a refund from the Child Tax Credit.
The flat tax is still progressive because of the deductions and credits, especially the $48,000 personal deduction for married couples.
Anyone can deduct charitable contributions. This could lead to an increase in deductions for charitable contributions and possibly more people donating to charity.

What is Newt Gingrich’s Individual Income Tax Plan?

Newt Gingrich’s tax plan is an optional 15 percent flat tax. Like most flat taxes, he exempts income near the poverty threshold. Here is how it is described:

This optional flat tax system will create a new personal deduction for every adult of $10,000 to $12,000 (double for married couple), which would be above the established poverty level at $40,000 to $48,000.

http://www.newt.org/news/newt-quad-city-times-optional-flat-tax-will-launch-recovery

That is a somewhat awkward sentence. At first it seems that a married couple gets 2 deductions of $12,000. Then it seems that he is saying the poverty level is $40,000 to $48,000. However, the poverty level is not $48,000, and $40,000 and $48,000 are 4 times larger than $10,000 and $12,000. It appears that the husband and wife both take a $12,000 deduction for a total of $24,000, and then, as a married couple, the total amount is doubled from $24,000 to $48,000. The same calculation can be used to get $40,000 from $10,000.

In his 21st Century Contract with America, he mentions $12,000 as the deduction amount. Thus, a married couple receives a $48,000 personal deduction, and a single individual gets a $12,000 deduction. That means a married couple with an income at $48,000, or below, is paying $0 tax.

The plan also provides the option to deduct mortgage interest and charitable donations.

After that, the leftover income is taxed at a flat 15 percent rate. Then, the plan keeps the current Child Tax Credit, which is $1,000 per child (16 or younger), so a married couple with 2 children doesn’t start paying taxes until over $60,000. It’s even higher if they have a mortgage or donate to charity.

The Child Tax Credit is refundable, which means that if it reduces the tax below $0, the taxpayer receives a refund for the amount.

For example, the couple with 2 children making $60,000 deducts $48,000, so the remaining $12,000 ($60,000 - $48,000) is taxed at 15 percent. The tax is $1800 (15% of $12,000), but they receive a $1000 credit for each of their 2 children. The $2000 credit is more than the $1800 tax, so they get a $200 refund.

Also, the plan keeps the Earned Income Tax Credit, which is a refundable tax credit for lower income households.

How much do people pay under Newt Gingrich’s Plan?

To calculate the taxes under Newt Gingrich’s plan, the income was subtracted by the $12,000 personal deduction ($48,000 for married couples.) For those who itemize, the average mortgage interest and charitable contribution deductions were taken from the IRS statistics for 2009 (which is the latest version.) The remainder is the taxable income, which was multiplied by 15 percent to get the total tax. Then the Child Tax Credit and Earned Income Tax Credit were subtracted from the tax, where applicable.

Here is how much people pay under Newt’s income tax plan in 2010 if they only took the standard deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	$260	($1,200)	($2,700)	($4,200)	($5,700)	($7,200)	($8,700)	($10,200)	($11,700)	($13,200)	($28,200)	($73,200)	($148,200)
	0	$450	$0	$0	$0	($300)	($1,800)	($3,300)	($4,800)	($6,300)	($7,800)	($22,800)	($67,800)	($142,800)
married	1	$4,050	$4,050	$2,680	$1,080	$700	($800)	($2,300)	($3,800)	($5,300)	($6,800)	($22,800)	($67,800)	($142,800)
filing	2	$5,060	$7,030	$5,230	$3,120	$1,700	$200	($1,300)	($2,800)	($4,300)	($5,800)	($22,800)	($67,800)	($142,800)
jointly	3	$5,560	$8,210	$6,860	$4,750	$2,700	$1,200	($300)	($1,800)	($3,300)	($4,800)	($22,800)	($67,800)	($142,800)

Red and in parenthesis means they pay taxes. Otherwise, they receive a refund in the amount shown.

Here is how much people pay under Newt’s income tax plan in 2010 if they deduct mortgage interest and charitable contributions (at the average rate):

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	$260	$0	($1,148)	($2,511)	($3,957)	($5,304)	($6,804)	($8,122)	($9,622)	($10,613)	($23,978)	($65,836)	($136,854)
	0	$450	$0	$0	$0	$0	$0	($1,404)	($2,722)	($4,222)	($5,213)	($18,578)	($60,436)	($131,454)
married	1	$4,050	$4,050	$2,680	$1,080	$1,000	$1,000	($404)	($1,722)	($3,222)	($4,213)	($18,578)	($60,436)	($131,454)
filing	2	$5,060	$7,030	$5,230	$3,120	$2,000	$2,000	$596	($722)	($2,222)	($3,213)	($18,578)	($60,436)	($131,454)
jointly	3	$5,560	$8,210	$6,860	$4,750	$3,000	$3,000	$1,596	$278	($1,222)	($2,213)	($18,578)	($60,436)	($131,454)

Single people get a $12,500 deduction, so they don't pay taxes when their income is below that. It is more if they take the mortgage and charity deductions. The same is true for married couples at or below their $48,000 deduction. If the married couples have children, they get refunds when their income is up to $60,000 to $80,000 because they have the Earned Income Tax Credit (EITC) and the Child Tax Credit. Singles and couples also get a refund from the EITC.

How Does Newt Gingrich’s Plan Compare to the Current Tax Code?

The 2010 taxes under the current tax code are calculated using only the standard deduction and personal exemptions. The Child Tax Credit and Earned Income Tax Credit were taken where possible. For those who itemize deductions, the average total itemized deductions from the IRS statistics for 2009 (which is the latest version) were used instead of the standard deduction.

Here is how much people would have gained under Newt’s income tax plan in 2010 if they only took the standard deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	$63	($17)	($17)	($17)	$650	$1,650	$2,650	$3,650	$4,650	$5,898	$19,831	$76,171	$176,171
	0	($7)	$131	$1,133	$2,361	$3,561	$3,561	$3,561	$3,461	$3,594	$4,394	$16,208	$70,963	$170,963
married	1	$0	$0	$767	$1,811	$3,014	$3,014	$3,014	$2,914	$2,714	$3,481	$15,186	$69,686	$169,686
filing	2	$0	($6)	$401	$1,397	$2,466	$2,266	$2,466	$2,366	$2,166	$2,569	$14,164	$68,700	$168,408
jointly	3	($1)	($6)	$34	$1,032	$1,919	$1,919	$1,919	$1,819	$1,619	$1,656	$13,613	$68,700	$167,131

Red numbers in parenthesis means they lose money under Newt Gingrich’s Plan.

Here are the gains for those who also itemize their deductions at the average rate:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($3)	$34	($18)	($8)	$46	$59	$1,059	$1,603	$2,603	$2,412	$10,395	$50,001	$128,921
	0	($7)	$0	$738	$1,583	$2,826	$4,124	$4,220	$3,919	$3,719	$3,008	$9,307	$46,787	$125,707
married	1	$0	$0	$372	$1,215	$2,279	$3,576	$3,672	$3,372	$3,172	$2,461	$8,285	$45,510	$124,430
filing	2	$0	($6)	$4	$847	$1,731	$3,029	$3,125	$2,824	$2,624	$1,913	$7,354	$44,749	$123,152
jointly	3	($1)	($6)	($2)	$482	$1,348	$2,481	$2,577	$2,277	$2,077	$1,366	$6,441	$44,749	$121,875

Let’s look at the numbers in a chart:

This is why the chart doesn't include $200,000 and above:

As with most flat taxes, the wealthy get huge tax cuts. The lower income taxpayers get little or no tax cuts. Taxpayers get better tax cuts as their income increases and their family size decreases to single. Very few taxpayers lose money. When they do lose money it is less than $20. The tax is optional, so those taxpayers can opt for the current system.

The 15 Percent Flat Tax is Still Progressive

Here are the effective 2010 tax rates for those who only take the standard personal deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	-2.60%	6.00%	9.00%	10.50%	11.40%	12.00%	12.43%	12.75%	13.00%	13.20%	14.10%	14.64%	14.82%
	0	-4.50%	0.00%	0.00%	0.00%	0.60%	3.00%	4.71%	6.00%	7.00%	7.80%	11.40%	13.56%	14.28%
married	1	-40.50%	-20.25%	-8.93%	-2.70%	-1.40%	1.33%	3.29%	4.75%	5.89%	6.80%	11.40%	13.56%	14.28%
filing	2	-50.60%	-35.15%	-17.43%	-7.80%	-3.40%	-0.33%	1.86%	3.50%	4.78%	5.80%	11.40%	13.56%	14.28%
jointly	3	-55.60%	-41.05%	-22.87%	-11.88%	-5.40%	-2.00%	0.43%	2.25%	3.67%	4.80%	11.40%	13.56%	14.28%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	-2.60%	0.00%	3.83%	6.28%	7.91%	8.84%	9.72%	10.15%	10.69%	10.61%	11.99%	13.17%	13.69%
	0	-4.50%	0.00%	0.00%	0.00%	0.00%	0.00%	2.01%	3.40%	4.69%	5.21%	9.29%	12.09%	13.15%
married	1	-40.50%	-20.25%	-8.93%	-2.70%	-2.00%	-1.67%	0.58%	2.15%	3.58%	4.21%	9.29%	12.09%	13.15%
filing	2	-50.60%	-35.15%	-17.43%	-7.80%	-4.00%	-3.33%	-0.85%	0.90%	2.47%	3.21%	9.29%	12.09%	13.15%
jointly	3	-55.60%	-41.05%	-22.87%	-11.88%	-6.00%	-5.00%	-2.28%	-0.35%	1.36%	2.21%	9.29%	12.09%	13.15%

The negative numbers represent taxpayers who get money back from the Earned Income Tax Credit and the Child Tax Credit. The zeros come from those who eliminate their tax using deductions and credits.

As with most of the flat taxes, this tax is not actually flat. It is progressive mostly because of the $12,000 personal deduction, which is $48,000 for a married couple.

Unique Features of the Plan

Newt does a couple of things that makes this more friendly to the taxpayer compared to other flat taxes. Firstly, he makes it optional, so nobody is losing money. Flat taxes are especially punitive on the lower income taxpayers, but this plan is neutral to them. Secondly, he includes the Earned Income Tax Credit and the Child Tax Credit, so it is more friendly to families and those below the poverty line. The $48,000 personal deduction for married couples combined with the Child Tax Credit gives refunds to a lot of low and middle income families.

More Deductions of Charitable Contributions (and Possibly More Charitable Contributions)

There is an interesting difference here between this and the current tax code. Under the current tax code, the choice is between the standard deduction or itemized deductions, so a taxpayer can only deduct something if their itemized deductions are more than the standard deduction (typically that means they have a mortgage or large medical bills.) Under this plan, anyone can deduct charitable contributions.

This could lead to more people deducting their charitable contributions, and it may lead to more people giving to charity.

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-newt-gingrichs-individual.html

Which Republican Candidate’s Tax Plan Do You Prefer? (Quiz)

2011-12-05T01:05:00.000-05:00

Which Republican Candidate’s Tax Plan Do You Prefer?

How would you change corporate taxes?

Eliminate the corporate income tax.
Cut corporate tax rates.
None of the Above.

How would you change the Capital Gains Tax?

Eliminate the Capital Gains Tax.
Eliminate the Capital Gains Tax for incomes of $200,000 and below.
Lower the Capital Gains and Dividend tax rates to 12%.
None of the Above.

How would you change the Estate Tax?

Eliminate the Estate Tax.
None of the Above.

How would you change the individual income tax?

Eliminate the individual income tax.
Provide an optional flat income tax.
Lower and flatten the individual income tax rates.
Simplify the tax code; stop using it to reward special interests and control behavior.
Eliminate all deductions and credits in favor of three lower rates of 8%, 14% and 23%.
None of the Above.

Select all additional tax measures you would support

Eliminate taxes on tips.
Eliminate the tax on Social Security benefits.
Move to a territorial tax system for corporate taxes - don't tax foreign income.
Stop the 2013 tax increases.
Eliminate corporate loopholes and special interest tax breaks.
Eliminate the Alternative Minimum Tax.
Eliminate the corporate income tax for manufacturers.
Increase the Research & Development Tax Credit from 14% to 20%.
Allow for 100% expensing of new equipment.
Repeal taxes outlined in Obamacare.

Results

You chose:

Here is what percent of each plan you liked:

Michele Bachmann

Newt Gingrich

Gary Johnson

Jon Huntsman

Ron Paul

Rick Perry

Mitt Romney

Rick Santorum

Go here to see the answer key:

http://articlesonpolitics.blogspot.com/2011/12/answer-key-to-republican-candidates-tax.html

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/which-candidates-tax-plan-do-you-prefer.html

Answer Key to the Republican Candidates Tax Plan Quiz

2011-12-04T21:29:00.001-05:00

The Answer Key to the Republican Candidates Tax Plan Quiz

Corporate Tax

Eliminate the corporate income tax. (Gary Johnson)
Cut corporate tax rates. (Newt Gingrich – cut to 12.5%, Ron Paul - cut to 15%, Rick Santorum - cut to 17.5%, Rick Perry - cut to 20%, Jon Huntsman - cut to 25%, Mitt Romney - cut to 25%, Michele Bachmann)
None of the Above.

Capital Gains Tax

Eliminate the Capital Gains Tax. (Newt Gingrich, Jon Huntsman, Rick Perry, Gary Johnson, Ron Paul, Michele Bachmann)
Eliminate the Capital Gains Tax for incomes of $200,000 and below. (Mitt Romney)
Lower the Capital Gains and Dividend tax rates to 12%. (Rick Santorum)
None of the Above.

Estate Tax

Eliminate the Estate Tax. (Newt Gingrich, Rick Perry, Mitt Romney, Rick Santorum, Ron Paul, Michele Bachmann, Gary Johnson)
None of the Above. (Jon Huntsman)

Individual Tax

Eliminate the individual income tax. (Ron Paul)
Provide an optional flat income tax. (Newt Gingrich, Rick Perry)
Lower and flatten the individual income tax rates. (Mitt Romney, Rick Santorum, Michele Bachmann)
Simplify the tax code; stop using it to reward special interests and control behavior. (Gary Johnson)
Eliminate all deductions and credits in favor of three lower rates of 8%, 14% and 23%. (Jon Huntsman)
None of the Above.

Additional Tax Measures

Eliminate taxes on tips. (Ron Paul)
Eliminate the tax on Social Security benefits. (Ron Paul, Rick Perry)
Move to a territorial tax system for corporate taxes - don't tax foreign income. (Ron Paul, Rick Perry, Rick Santorum, Newt Gingrich, Jon Huntsman, Michele Bachmann, Mitt Romney)
Stop the 2013 tax increases. (Ron Paul, Newt Gingrich, Mitt Romney)
Eliminate corporate loopholes and special interest tax breaks. (Rick Perry)
Eliminate the Alternative Minimum Tax. (Rick Santorum, Newt Gingrich, Jon Huntsman, Michele Bachmann)
Eliminate the corporate income tax for manufacturers. (Rick Santorum)
Increase the Research & Development Tax Credit from 14% to 20%. (Rick Santorum)
Allow for 100% expensing of new equipment. (Rick Santorum, Newt Gingrich)
Repeal taxes outlined in Obamacare. (Michele Bachmann)

Notes:
Gary Johnson does support the Fair Tax (replace all federal taxes with a 23% national sales tax.) However, it is not specifically mentioned on the Economy and Taxes page on his official campaign website, so it was not included above. When his website says “Eliminate punitive taxation of savings and investment”, it is interpreted to mean both the Capital Gains Tax and the Estate Tax. Also, the Fair Tax replaces those taxes.

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/answer-key-to-republican-candidates-tax.html