An overview of Obama and Romney\'s positions on key financial issues.

1. Priva Wealth Managem
ate ment Products & Services | July 2012
W
Where the Presid
dential Candidat Stand on Fin
C tes d nancial Issues
Sig
gnificant differ
rences emerge on tax policy, health care act Medicare
o h t,
Issue
e Barack Obama Mitt
M Romney
Incom Tax Policy
me  Supports mainntaining current tax rates for married co
ouples with  Supports cuttin all individual tax rates by 20%. This would bring
ng
income below $250,000 and singles below $200,000 raising rates
0, today’s top tax rate down from 35 to 28%. The low
5% west tax rate
from 33% and 35% to 36% and 39.6% on taxpayers with income
3 s would be reduc from 10% to 8%
ced %.
above those th
hresholds.
 Would pay for llowering the ordina tax rates by reducing or
ary
 Proposed the “Buffet Rule”, which would phase-in a minimum tax
“ h eliminating variious tax preference (deductions, cred
es dits, etc.).
rate of 30% on taxpayers with inc
n come over $1 million. However, has n stated which pr
not references would be targeted.
 Would cap the benefit of various tax preferences at 28%, including:
t
o All itemiz deductions
zed
o Employe
er-provided health in
nsurance
o Municipa interest (see belo
al ow)
o Contributions to retirement plans and health sa
avings
accounts
s
o Deductio for student loan interest, higher ed
ons n ducation
expenses
 Would bring ba phaseouts of ite
ack emized deductions, personal
exemptions for couples with incom over $250,000 (singles over
r me
$200,000).
Altern
native Minimum  Would essentia replace the AM with the Buffet Rule, which
ally MT R  Supports repea
aling the Alternative Minimum Tax.
e
Tax ((AMT) would create a 30% tax on any ta
axpayer with income over $1
million.
©2012 Robert W. Baird & Co. Incorporated. Member NYSE & SIPC.
.
Robe W. Baird & Co. 777 Ea Wisconsin Avenue, Milwaukee, Wisconsin 53
ert ast M 3202. 1-800-RW-BAIRD. www.rwbaird.com
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Page 1 of 3

2. Wh the Presid
here dential Candid
dates Stand on Financial Issu continued.
ues,
Issue
e Barack Obama Mitt
M Romney
Taxes on investment  Would maintain current 0% and 15% tax rates on qu ualified  Would maintain the current 0% an 15% rates on qu
n nd ualified
me
incom dividends and long-term capital gains for couples wi income
g ith dividends and llong-term capital ga
ains.
under $250,00 (singles under $2
00 200,000).
 Would eliminat tax on capital gains, dividends and interest
te
 Would raise the long-term capital tax rate taxpayers over those income for any taxpayer with adju
y usted gross income below
e
thresholds to 20%.
2 $200,000.
 Would tax qualified dividends for taxpayers over tho thresholds
ose  Would repeal th 3.8% Medicare tax on investment income (as a
he
as ordinary inccome. Combined with other proposals this would
w s, result of repealling the health care act – see below).
e
result in tax rat of 36% or 39.6%
tes %.
 Would maintain the additional 3.8 Medicare tax inc
8% cluded in the
health care act on investment inc
t come. As a result, the top tax rate
t
on long-term capital gains would become 23.8% and on dividends
c d
would become 43.4%.
e
 Would cap the tax benefit of municipal interest at 28 effectively
8%,
creating a tax of 8% or 11.6% for those in the top tw tax brackets.
o wo
Corpo
orate tax rates  Would cut the corporate tax from 35% to 28%, bann
ning unspecified  Would cut the c
corporate tax rate f
from 35% to 25%.
s.
tax deductions
 Move to a territ
torial system, rathe than taxing corpo
er orations on
 Would target oil and gas companies for higher taxes would offer
o s, income earned overseas.
d
tax breaks for manufacturers.
 Assess a minim
mum tax on foreign earnings.
n
Estat Tax
te  Proposed an estate tax exemption of $3.5 million an a top tax rate
e nd  Supports full, p
permanent repeal o the estate tax.
of
of 45%. This compares to a $5 million exemption an 35% top
c m nd
rate today, and $1million and 55% for 2013 under cu
d % urrent law.
Healt Care Act
th  Passed during the President’s firs term, and recentl upheld as
st ly  Supports the fu and immediate re
ull epeal of the health care act.
constitutional by the Supreme Co
b ourt.
Socia Security
al  Called on Congress to create a plan to save Social Security.
S  No change to c
current or projected benefits for those over age 55.
d
 Opposed to privatization.  Lower the rate of inflation adjustm
ments for higher inc
come
recipients, no c
change for lower inccome recipients.
 Supports increa
asing the retiremen age by 1 to 2 yea
nt ars.
 Would allow tax xpayers to direct a portion of their Soc Security
cial
tax to a private account.
e
©2012 Robert W. Baird & Co. Incorporated. Member NYSE & SIPC.
.
Robe W. Baird & Co. 777 Ea Wisconsin Avenue, Milwaukee, Wisconsin 53
ert ast M 3202. 1-800-RW-BAIRD. www.rwbaird.com
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Use: 7/2012
Page 2 of 3

3. Wh the Presid
here dential Candid
dates Stand on Financial Issu continued.
ues,
Issue
e Barack Obama Mitt
M Romney
Supp
porting Medicare  Maintain Medic
care in its current single-payer structu and
s ure  Turn Medicare into a premium support system, wher seniors
re
implement cha
anges enacted in th health care act.
he receive a fixed benefit to purchase the insurance the wish to own.
e ey
Support payme ents would be reduc for higher income retirees.
ced
 Would eliminat subsidies to private insurance Medicare
te
advantage program  Medicare would be one option, an other plans must offer
d nd
coverage comp parable to today’s M
Medicare. Seniors could choose
 Would gradual phase out the Medicare prescription drug donut
lly
plans that cost more or less than the support payme
ents
hole.
 Would only app to future retirees not those currently in or near
ply s,
retirement.
©2012 Robert W. Baird & Co. Incorporated. Member NYSE & SIPC.
.
Robe W. Baird & Co. 777 Ea Wisconsin Avenue, Milwaukee, Wisconsin 53
ert ast M 3202. 1-800-RW-BAIRD. www.rwbaird.com
First U
Use: 7/2012
Page 3 of 3