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There has been a barrage of headlines about the tax plans released Wednesday by President Barack Obama and Republican candidate Mitt Romney.
Obama announced closing corporate tax loopholes and lowering the rate corporations would pay from 35% to 28%. And in recent weeks Obama has indicated he'd keep the Bush tax cuts in place for most Americans and raise the effective tax rate on individuals making more than $250,000 a year.
Meanwhile Romney announced cutting the individual tax rate by 20% across the board. The former Massachusetts governor was already on the record for cutting corporate tax rates form 35% to 25%.
Beyond those details, we do no know much more about the plans, yet analysts and pundits have managed to scrutinize the impact each would have on individuals, corporations and the U.S. debt load.
Howard Davidowtiz, CEO of Davidowitz and Associates, who has dealt with restructuring debt -- albeit corporate debt -- for years, joined The Daily Ticker's Aaron Task to size up the plans. He does not give much credence to either Obama or Romney's plan, or any of the candidates' plans for that matter, calling them "strictly political documents."
"We are in the silly season. We're in the political season," he says in the accompanying interview. "No one has any integrated plan and nothing, as always, is paid for."
In his estimation, the government needs to save $12 trillion to really start digging the country out of its crippling debt burden, and none of the plans on the table do that. From the looks of it, most of the plans would actually add more to current debt levels. You can't solve a debt problem with more debt, says Davidowitz, who is known to be a very outspoken conservative. "We need integrated thinking about taxes."
If it were up to him, he'd let the Bush Tax cuts expire at the end of the year for everyone, which he says would save the country $4 trillion right there. He'd also lower the corporate tax rate in an effort to bring home the billions of U.S. corporate profits trapped over seas.
Tell us what you think! Do you think any of the candidates has offered a viable tax plan?
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