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McCAIN would seek to make all of President Bush's rate cuts permanent and add to them by doubling the personal exemption to $7,000. That'd be unlikely to win congressional approval, however, because the Democratic Congress wants to let tax breaks for families making over $250,000 expire. McCAIN also wants to eliminate the alternative minimum tax, while Democrats favor restricting it to upper incomers. McCAIN says he'll pay for his new tax cuts -- but not an extension of Bush's cuts -- by reducing government spending, although he hasn't provided details.
OBAMA favors new tax breaks for seniors and low-income earners, as well as keeping middle-class tax breaks. He'd add a tax credit of up to $500 per person or $1,000 per family to help offset the payroll taxes on the first $8,100 of wages. Seniors making less than $50,000 would pay no taxes. Those who don't itemize would be eligible for a 10% fully refundable mortgage credit He'd raise tax rates for families making over $250,000 a year by letting Bush's tax cuts for this group expire. He would also apply a 2% to 4% payroll tax on income over $250,000 beginning no sooner than 2019. OBAMA would also raise the top rate for capital gains and dividends to 20%, while McCAIN would keep it at 15%. OBAMA has said, however, that if the recession deepens, he may postpone some of his tax increases or accelerate some of his proposed cuts.
McCAIN and OBAMA both oppose a complete repeal of estate taxes while supporting higher exclusions that would be portable for spouses, which would greatly simplify tax planning. But the two candidates differ on many details.
McCAIN would set the exclusion at $10 million for a couple; OBAMA favors $7 million. McCAIN would set a top tax rate of 15% for amounts above the exclusion; OBAMA wants to make it 45%.
McCAIN would slash the top corporate marginal tax rate from 35% to 25% and make the research and development credit permanent. He promises to eliminate what he regards as corporate pork, such as the federal government's Advanced Technology Program, which aids high-tech companies.
OBAMA has said that he's open to reducing corporate tax rates if business loopholes are closed to pay for it, but he hasn't been specific on either score. He wants targeted corporate tax incentives to encourage companies to keep jobs in the
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Obama favors an increase in the capital gains tax rate while believing that it will lead to lower taxes being collected. It is his idea of "fairness" rather than the concept of funding government that bothers me most. This approach would lower everyone's income as funds get trapped into less productive investments due to the cost of redeployment.
The government is always "asking" for more money and spending more.
People should tell the government to be more efficient and no more increasse in taxes.
We could reduce gov't by 20% and still have ALL
the same services.
Lets not forget that Obama would also like to tax any "profits" that you receive when you sell your home. The #1 investment most people have in their lives. Especially the poor and the elderly (so much for helping them out).
Peter Blank here, editor of The Kiplinger Tax Letter. Obama's tax plans for capital gains do not include any changes to the home-sale exclusion, currently at $250,000 for singles and $500,000 for couples. He would merely raise the maximum rate on taxable gains to 20% -- for those making more than $250,000 a year.
Rick: Actually, Obama favors raising the maximum capital gains tax rate from 15% to 20% only for those filers with income over $250,000. Obama's plan will cut taxes by three times more than McCain's plan for middle class families.
ANYONE THAT THINKS TAXING THE RICH SO THE GOVERNMENT CAN SPEND MORE MONEY IS JUST PLAIN STUPIDITY. REDUCING GOVERNMENT SPENDING AND REDUCTING TAXES WILL GENERATE REAL ECONOMIC BENEFITS. OBAMA'S PLAN WILL SHRINK ECONOMIC GROWTH AND PENALIZE THOSE THAT CREATE MOST OF THE JOBS. DEMOCRATS AND REPUBLICANS ARE TO BLAME FOR THIS ECONOMIC MESS. BUSH HAS NOT VETOED ONE SPENDING BILL SINCE HE HAS BEEN IN OFFICE. HIS APPOINTEES IN THE ENERGY, SEC, AND TREASURY HAVE BEEN A SLEEP AT THE WHEEL AND CONGRESS LEAD BY PELOSI AND REID HAVE NO SOLUTIONS AND DON'T KNOW WHAT TO DO SO THEY WILL GO HOME AND WAIT FOR ROME TO BURN.
How can we put a number on middle class and play fairness to each family's logistics? $250k is a very good living in a number of locations around the US, but what about the larger cities? Is $250k really "upper class" in New York, DC, or LA? It's unfortunate for those that actually do well in life and prosper beyond $250k; it's unfortunate that they have to bailout the government's bad decisions, ignorant banks, and individuals (b/c they may not even be citizens)that bit off more than they could chew.