Election Cheat Sheet: The Economy

With high rates of unemployment and sluggish economic growth, the fate of the economy is among the most important issues of the presidential campaign. Here's a breakdown of what President Barack Obama and former Massachusetts Governor Mitt Romney are offering as solutions.

Taxes

Romney proposed to lower all income tax rates by 20 percent and make the Bush tax cuts permanent. He plans to reduce the corporate tax rate to 25 percent and promises to prevent taxes on dividends. He also plans to prevent capital gains taxes for those earning less than $250,000 per year.

Obama plans to let the Bush tax cuts expire for households with an income over $250,000 but keep them for households earning less. Obama also pledged to eliminate tax breaks for companies that move jobs overseas.

Spending

Romney proposed to cap federal spending at 20 percent of gross domestic product (GDP) and pledged to introduce a constitutional amendment that requires a balanced budget. He continually condemns Obama's decision to bail out the auto industry. He vowed to reduce federal funding to several programs including Amtrak, PBS and the National Endowment for the Arts and the National Endowment for Humanities. Romney has also been adamant in overturning Obamacare and returning healthcare decisions to the states.

Obama has remained firm on his decision to bail out the auto industry and the financial sector and believes stimulus spending and tax cuts are viable short-term solutions to help the economy grow. Obama was at the forefront of the Patient Protection and Affordable Care Act, which attempts to provide universal health coverage throughout the United States. The clause, which mandates the purchase of healthcare coverage is said to be modeled after Romney's healthcare system in Massachusetts and has been especially contentious. Romney said Obamacare would not work at the federal level.

The Federal Reserve

Romney promised to replace Federal Reserve Chairman Benjamin Bernake and his adherence to quantitative easing. He said reduced interest rates are necessary in stimulating the economy. Many have speculated the economist and academic Glenn Hubbard would be Romney's first choice for chairman.

Though not clearly stated, many believe Obama would keep Bernake as chairman of the Federal Reserve.

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