Presidential Candidates and taxes

Well, here we are fours later and new candidates are posturing for the Presidential seat. I thought I would put out some information about the two candidates in a light breakdown of each in respect to taxes and what they propose.

In an effort to be fair to the candidates the one listed first was chosen simply by alphabetization.

Presidential Candidate John McCain:

            “What we need is a simpler, a flatter and fair tax code. As president, I will propose an alternative tax system. When this reform is enacted, all who wish to file under the current system could still do so. And everyone else could choose a vastly less complicated system with two tax rates and a generous standard deduction.”

Ø  Extending the Bush tax cuts, including those on dividends and capital gains, to avoid tax increases on millions of Americans.

Ø  Permanent repeal of the Alternative Minimum Tax, paid by some 25 million middle-class families, saving taxpayers nearly $60 billion a year.

Ø  Doubling the personal exemption for dependents from $3,500.00 to $7,000.00

Ø  A $2,500.00 tax credit ($5,000.00 for families) to help people purchase health insurance.

Ø  Reducing the federal corporate tax rate to 25% from 35% to encourage investment and keep jobs in the U.S.

When asked by Fortune Magazine’s David Whitford, editor at large “What do you see as the gravest long-term threat to the U.S. economy?”  After a long pause Senator McCain said “Well, I would think that the absolute gravest threat is the struggle that we’re in against radical Islamic extremism, which can affect, if they prevail, our very existence. Another successful attack on the United States of America could have devastating consequences.” You can read the full article The evolution of John McCain here.

Presidential Candidate Barack Obama:

            “I think it’s time to restore fairness and responsibility to our tax code. We need to reward work, not just wealth. We need to stop giving tax breaks to companies that ship jobs overseas, and put a tax cut in the pockets of middle-class Americans”

Ø  An income-tax cut of up to $500.00 per person {or $1,000.00 for a working family} to offset the payroll tax.

Ø  A universal tax credit for homeowners, giving each household an average tax savings of about $500.00 a year.

Ø  Eliminating income taxes for the seven million retirees who make less than $50,000.00 a year.

Ø  A simplified tax return for all Americans; so that the 40 million taxpayers who have jobs, bank accounts and who take the standard deduction could do their taxes in under five minutes.

Ø  Adjusting the top dividends and capital-gains tax rates close to, but no greater than, the rates President Reagan set in 1986, a move that would raise the capital-gains tax rate from 15% to between 20% and 28%.

What should the next president do to fix the economy? Barack Obama wants an additional $50 billion economic-stimulus package on top of the $168 billion approved this year, supports expanded unemployment assistance to help those whose benefits have expired, a $10 billion foreclosure-prevention fund to help at-risk homeowners, government-subsidized health coverage and expanded retraining aid for workers who lose their jobs because of downsizing or outsourcing. Obama would invest $1 billion over five years in transitional jobs and career programs to help low-income Americans succeed in the work force.

Presidential Candidate Barack Obama also supports a raise in the minimum wage to $9.50 an hour. First Hard Numbers on Obama Tax Plan Show Dramatic Tax Redistribution

If the above seems pointed in favor of one candidate and not the other, it is not meant to. The above information was taken from several internet and news paper sources. This should not be used to solely base your vote on. Please vote responsibly and consider all the issues each candidate has.

© 2008, Bruce Mc. All rights reserved.