New Tax Cuts: Barack Obama vs. John McCain

September 7, 2008

There is so much confusion floating around that it’s time for a fact-based discussion about the key issues in this upcoming election.  I’m going to create individual posts on key issues that impact us all.  The source for the following 2 quotes (in italics) is the Reuters news agency.

McCain: Double the personal tax exemption for dependents to $7,000. Reduce the top corporate tax rate in phases to 25 percent from 35 percent. Give businesses a first-year deduction for new equipment. Convert the research and development tax credit to a permanent credit for 10 percent of R&D wages. Proposed a summer suspension of federal gas tax.

Obama: Create refundable credit for low-income workers of 6.2 percent of earnings up to $8,100. Expand the Earned Income Tax Credit and Child and Dependent Care Tax Credit. Create a 10 percent tax credit on mortgage interest filers who don’t itemize. Eliminate income tax for seniors making less than $50,000 per year. Mandate automatic 401(k) and IRA, expand tax credits for low-income savings and college education funds. Make permanent the R&D and renewable energy production tax credits.

What does this mean with respect to new taxes?  Under McCain, businesses will benefit.  Under Obama, lower income families with dependent children and seniors will benefit;  those traditionally considered “wealthier” will not do as well under Obama.  

I hope this provides you with some insight you need about the 2 candidates.   Democrat Dave