a side by side look. which is McCain? which is Obmam?
| ew Tax Cuts |
Refundable Making Work Pay tax credit of 6.2 percent of earnings
up to a maximum of $8,100
Refundable
Universal Mortgage Credit of 10 percent or mortgage interest for
nonitemizers, capped at $800 ($8,000 of interest)
Eliminate income tax for senior making less than
$50,000 per year
First-time buyers tax credit for new farmers
Small Business and Microenterprise Initiative tax credit of 20 percent on up to
$50,000 of investment in small owner-operated
businesses
|
Allow first-year deduction of 3 and 5-year equipment, deny
interest deductions (expires)
Reduce maximum corporate tax rate from 35 to 25 percent
Increase the dependent exemption by 70 percent
Suspend the federal gas tax (18.4 cents per gallon
from this Memorial Day until Labor Day |
| Adjustments to Existing
Credits |
Make R&D and renewable enery production tax credit (wind, solar) permanent
Extend
childless EITC phase-in range and increase phaseout threshold, double
the phase-in and phase-out rates for childless individuals paying child
support, increase EITC phase-in rate to 45 percent for families with
three or more children; increase add-on to EITC phase-out threshold for
married filers to $5,000
Make CDCTC refundable and allow low-income
families to receive up to a 50 percent credit for child
care expenses
Make CDCTC refundable and allow low-income families to receive up to a 50 percent credit for child care expenses
Make
saver's credit refundable and change to a 50 percent match of the first
$1,000 of savings, phases out beginning before $75,000
Increase Hope credit 100% match rate to $4,000 for college education and make refundable, rename American Opportunity Tax Credit
Mandate automatic 401(k)s and automatic IRAs
|
Convert R&D credit to 10 percent of wages incurred for R&D, make permanent
|
| Capital Gains |
Increase maximum capital gains rate to 25 percent
Require information reporting of basis for gains
Eliminate
capital gains taxation of start-up businesses and provide capital gains
tax break for landowners selling to beginning family farmers |
Keep the current rates on dividends and capital gains |
| Bush Tax Cuts |
Permanently extend marriage penalty relief, adoption credit expansions, 10,15,25, and 28% rates, EITC simplification
Restore
36 and 39.6% statutory income tax rates, Restore PEP and Pease
phaseouts for households making more than $250,000, increase in PEP and
Pease threshold |
Make permanent all provisions other than the estate tax repeal |
| Alternative Minimum Tax |
Extend and index 2007 AMT patch |
Extend and index 2007 AMT patch, further increase exemption by 5 percent in excess of inflation after 2013 (temporarily) |
| Estate Tax |
Make permanent estate tax with $3.5 million exemption and 45 percent rate |
Make permanent estate tax with $5 million exemption and 15 percent rate |
| Simplification |
Give taxpayers the option of pre -filled tax forms to
verify, sign, return to IRS |
Give taxpayers the option of an alternative tax system
with two rates and a larger standard deduction and personal exemption |
| Revenue Raisers and Tax Havens |
Eliminate oil and gas loopholes
Close loopholes in the corporate tax deductibility of CEO pay
Tax carried interest as ordinary, Increase the highest bracket for capital gains and dividends
Reallocate multinational tax deductions
Codify economic substance doctrine
Create international tax haven watch list
Other unspecified revenue raising provisions |
Eliminate oil and gas loopholes
Unspecified corporate base broadeners
Eliminate earmarked projects from the budget, freeze nonmilitary discretionary spending for one year, eliminate programs
|
| Health |
Income-related federal tax subsidies for health insurance |
Replace
exclusion from income for employer sponsored health insurance with
refundable credit of $2,500 for individuals and $5,000 for families |
| Other |
Social Security/payroll taxes: increase the maximum amount of earnings covered by Social Security |
Require a 3/5 majority vote in Congress to raise taxes
Ban internet and cell phone taxes
Higher premiums for Medicare prescription drug coverage for single people
earning more than $82,000 and couples earning more than $164,000 |