Personal Taxes
Both candidates favor keeping some or all of the Bush tax cuts in place. Wealthy taxpayers win out under McCain's plan, while lower-income earners benefit more under Obama's proposals.
· Make 2001 and 2003 tax cuts permanent for everyone.· Permanently repeal the 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. · Provide $1,000 tax cut for working couples making less than $250,000.
· Introduce other 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**
NEXT: Taxing Business
Last updated October 29 2008: 12:15 PM ET
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*June 10, 2008, Speech, Washington, D.C.
**Sept.18, 2007, Speech, Washington, D.C.
*June 10, 2008, Speech, Washington, D.C.
**Sept.18, 2007, Speech, Washington, D.C.
