Industry News - Day Trading News and Taxes
January 5, 2012
Rick Santorum's tax plan now drawing attention
With his unexpectedly strong showing in recent polls, the tax proposals of Rick Santorum are now being examined more closely, and might have a significant impact on day trading companies if they were to go into effect.
In an evaluation of the economic plan proposed by the candidate, CNNMoney says that Santorum's plan would essentially result in a simplification of the overall tax code, creating just two income tax brackets and increasing deductions for parents with children.
In addition, Santorum's plan would also change estate planning and day trading taxes. Estate taxes would be completely eliminated, along with the Alternative Minimum Tax. The capital gains tax rate would also be reduced by 20 percent, while the corporate tax rate would be reduced by half.
The news source says that a preliminary assessment of the plan shows that it would also maintain many existing tax breaks, such as those for retirement savings and mortgage interest payments. However, it would not reduce the deficit, experts say.
"Because [Santorum's plan] cuts rates significantly but does not eliminate tax preferences -- and even expands a few -- it would very likely add trillions of dollars to the federal deficit," Urban Institute resident fellow Howard Gleckman said on the TaxVox blog.
At this point it's unknown how Santorum's plan completely measures up to the other GOP candidates'. Gleckman said coming up with a way to pay for his tax plan may be a significant obstacle in the election.