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Bush, Kerry and your wallet
Here's a look at some of their key pocketbook proposals on taxes, tuition, health insurance and pay.
October 13, 2004: 3:23 PM EDT
By Jeanne Sahadi, CNN/Money senior writer

NEW YORK (CNN/Money) - Besides big issues such as economic growth or energy policy, President Bush and Sen. John Kerry are addressing many pocketbook issues ranging from taxes to health insurance to tuition relief and worker pay.

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Some of these issues are sure to be raised during Wednesday night's presidential debate on domestic affairs, so we thought it would be helpful to outline some of their proposals.

Keep in mind, neither candidate has made specific dollars-and-cents proposals about two very complex pocketbook issues: tax reform and funding Social Security.

Indeed, both of those issues, depending on how they're handled, may negate taxpayer cost savings resulting from the candidates' other pocketbook proposals, should they pass.

The first issue, more specifically, is reforming the alternative minimum tax, a provision of the tax code originally designed to ensure wealthy citizens pay their fair share. For those affected by it, AMT doesn't allow for any number of deductions permitted other taxpayers.

What's important to note is that under current law, the amount of income exempt from the alternative minimum tax is not indexed for inflation.

So unless that part of the tax code is reformed, the AMT will affect a growing number of middle-income citizens. The number of taxpayers affected will jump from 3 million in 2004 to more than 29 million by 2010, according to estimates from the Urban-Brookings Tax Policy Center.

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Both campaigns have said they would call for a bipartisan effort to reform AMT.

The second question is how to shore up potential shortfalls in Social Security. Bush has indicated he favors letting younger workers invest some of their Social Security taxes in stocks, while Kerry has said he opposes privatizing Social Security.

More about the election
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Complete coverage on CNN.com
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What the election really means

So stay tuned.

In the meantime, see what the candidates are proposing to do in four other areas that could affect your wallet.

And for a look at how the candidates differ on some of the bigger macro-economic issues, such as jobs, oil prices and the trade and budget deficits, click here.  Top of page




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