Factbox: Tax plans of Republican presidential contenders

Fri Oct 28, 2011 2:24pm EDT

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(Reuters) - The major Republican presidential contenders are offering tax programs that range from radical to rehashed corporate wish lists.

Here is a look at the proposals each candidate is making, based on statements on their websites and Reuters reports:

MICHELE BACHMANN

-Personal

Eliminate the estate tax; "fix" the alternative minimum tax; reduce the number of tax brackets.

-Corporate

Give multinational corporations a tax holiday on repatriating foreign profits. Cut the tax rate on future foreign profit repatriation to 5 percent from 35 percent.

Cut the corporate tax rate "substantially;" make the research and development tax credit permanent.

HERMAN CAIN

-Personal

Impose a 9 percent national sales tax.

Replace the progressive individual income tax system with a 9 percent individual flat tax on gross income minus charitable deductions. Set up inner-city empowerment zones offering tax deductions to residents.

Eliminate payroll taxes, the capital gains tax, the estate tax and "nearly all deductions."

Eventually introduce a "Fair Tax" imposing a single 23 percent national sales tax to replace other taxes.

End the Internal Revenue Service "as we know it."

Repeal the 16th Amendment to the Constitution, which established the permanent income tax.

-Corporate

Replace the corporate income tax system with a 9 percent business flat tax on gross income minus purchases from other U.S.-located businesses, capital investment and net exports.

End the corporate tax on repatriated foreign profits.

Allow immediate expensing of business investment.

NEWT GINGRICH

-Personal

Make the Bush tax cuts permanent.

Eliminate the capital gains tax and the estate tax.

Adopt an optional flat tax of 15 percent.

Preserve the mortgage interest and charitable donation deductions. Create a new personal deduction of $12,000.

-Corporate

Cut the corporate tax to 12.5 percent from 35 percent, and allow 100 percent expensing of new equipment purchases.

JON HUNTSMAN

-Personal

Reduce the number of tax brackets to three: 8, 14 and 23 percent. Eliminate all deductions and credits; the alternative minimum tax; and the capital gains and dividend taxes.

-Corporate

Cut the corporate tax rate to 25 percent from 35 percent.

Shift to a territorial system and implement a repatriation tax holiday for overseas corporate profits.

RON PAUL

Amend the Constitution to abolish the income tax and the estate tax. Shut down the Internal Revenue Service.

Eliminate the capital gains tax; taxes on tip income; taxation of Social Security benefits.

RICK PERRY

-Personal

Replace the progressive tax system with a single 20 percent tax bracket that would be optional, letting low-income taxpayers stay in the 10 percent and 15 percent brackets.

Eliminate the capital gains tax, dividend tax, estate tax, and the tax on Social Security benefits.

For families earning less than $500,000, keep the mortgage interest, charitable gifts and state and local tax deductions.

Nearly double the standard deduction for non-itemizing taxpayers to $12,500 for individuals and dependents.

-Corporate

Cut the top corporate tax rate to 20 percent from 35 percent, with lower rates for smaller businesses.

Give corporations a tax holiday to repatriate offshore profits at a 5.25 percent rate instead of 35 percent.

Shift the United States to a territorial tax system, allowing multinationals to pay little or no U.S. income tax on profits brought home from abroad.

MITT ROMNEY

-Personal

Do not let the Bush tax cuts expire. Make the Bush investment income tax cuts permanent.

Eliminate taxes on capital gains, dividends and interest for taxpayers with adjusted gross income under $200,000.

Eliminate the estate tax.

-Corporate

Cut the corporate tax rate to 25 percent from 35 percent.

Switch to a territorial system letting U.S. corporations pay little or no U.S. tax on foreign profits.

Adopt a "robust investment tax credit" and extend the write-off for capital expenditures for additional year.

(Reporting by Kevin Drawbaugh and Patrick Temple-West in Washington; editing by Mohammad Zargham)

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