Daily Tax Update - August 24, 2012: Republican National Convention Begins Monday

REPUBLICAN NATIONAL CONVENTION BEGINS MONDAY:  The Republican National Convention will be held in Tampa, Florida on August 27-30.  Tropical Storm Isaac could have an impact on the convention and Mitt Romney may be nominated early in the week.  Rep. Paul Ryan is slated to accept the party's nomination for Vice President Wednesday evening.

  • Romney's tax plan says, "We are in the midst of yet another great American discussion about taxation. Perhaps no policy area has become more sensitive or controversial. At stake are two vital concerns for the American future: How will we generate sufficient revenue to balance our budget without discouraging economic activity, and will the burden of taxation fall equitably on all Americans?"  Romney's plan adds, "Tax policy shapes almost everything individuals and enterprises do as they participate in the economy. With bad design, tax policy can discourage economic activity. With good design, it can encourage it. Yet our current tax system is an accretion of decades of patchwork decisions that came into being with no systematic thought for their implications for job creation or economic growth. Every year, individual taxpayers are forced to confront a Rube Goldberg contraption of bewildering complexity that leads to a range of undesirable outcomes, including the fact that millions of Americans have to pay hundreds of dollars to have their tax returns prepared by a professional who understands the rules. Corporations, for their part, are subject to rules and regulations that all too often encourage tax gamesmanship while discouraging reinvestment in the American economy."
  • Romney’s tax plan includes:

Individual taxes:

    • Make permanent, across-the-board 20 percent cut in marginal rates
    • Maintain current tax rates on interest, dividends, and capital gains
    • Eliminate taxes on interest, dividends, and capital gains for taxpayers with AGI below $200,000
    • Eliminate the estate tax
    • Repeal the Alternative Minimum Tax (AMT)

Corporate taxes:

    • Cut the corporate rate to 25 percent
    • Strengthen and make permanent the R&D tax credit
    • Switch to a territorial tax system
    • Repeal the corporate Alternative Minimum Tax (AMT)

Romney’s tax plan can be accessed here.

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE: 
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE 
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