Your Money: McCain vs. Obama

· Make 2001 and 2003 tax cuts permanent for everyone.

· Permanently reduce the reach of Alternative Minimum Tax, the so-called "wealth tax" that threatens the middle class.

"I will...propose...a middle-class tax cut -- a phase-out of the Alternative Minimum Tax to save more than 25 million middle-class families as much as $2,000 in a single year." -- McCain*

· Leave all tax cuts in place for everyone except couples making more than $250,000 and single filers making more than $200,000. Those high-income groups would see their top two income tax rates revert to 36% and 39.6% from 33% and 35% respectively. And their capital gains and dividend tax rates would also revert to 20% from 15%.

· Introduce new tax breaks for lower and middle-income households.

"We shouldn't be distorting our tax code to benefit a few powerful interests -- we should be insisting that everyone pays their fair share, and when I'm president, they will." -- Obama**