McCain vs. Obama on Taxes

This information came to my attention via an Email from Steve Maloney with the figures from Americans for tax reform.

Steve says; Did you ever wonder how "President" Obama is going to provide a $7,000 tax credit to buyers of hybrid vehicles (and a tax credit of zilch to us poor non-hybrid buyers)? If you read below, you'll see that Obama is going to raise your taxes -- big time. If you pay at the lowest tax rate (10%) your taxes will go up by half (50%).

In short, Obama's willing to spend big money to buy your votes, but it turns out it's your money he's using. Please read the material below comparing current tax law, McCain's proposals, and Obama's proposals. The material is from Grover Norquist's Americans for Tax Reform, and there's a link to the entire piece. Please use this material if you have a blog, and if you don't have one, disseminate it in as many ways as you can. Pocketbook issues will determine this election, and Obama is pointing all of us in the direction of the poorhouse. He's inexperienced, unqualified, untrustworthy, and dangerous. He's also a terrible bowler.


Which April 15 would you rather have?

Current Law
McCain
Obama

Top Tax Rate
Current: 35%
McCain: 35%
Obama: 39.6%

McCain would keep the top tax rate on earned income at the current 35%. Obama would raise it to 39.6%.


Lowest Tax Rate
Current: 10%
McCain: 10%
Obama: 15%

Currently -- and under a McCain Administration -- the lowest tax rate on earned income would remain at 10%. Under Obama, the lowest rate would increase by half -- 50%. Clearly, people at this tax level are not the much-maligned "rich people."


Capital Gains Rate
Current: 15%
McCain: 15%
Obama: 20%

For taxes on capital gains from the sale of a house or your other assets, McCain would keep the rate the same. Obama would raise it from 15% to 20%.


Dividends Rate
Current: 15%
McCain: 15%
Obama: 39.6%

On dividends from stocks or mutual funds you own, McCain would keep the tax rate the same. Obama would more than double it.

Death Tax
Currnet: 0% by 2010 (Repealed)
McCain: 15%/$10 million
Obama: 55%/$1 million

Under McCain, the first $5 million ($10 million for a surviving spouse) of Inheritance (Death) tax on an estate would be death tax-exempt McCain would tax at a rate of 15% on estates worth over $10 million. Obama would tax at a whopping 55% on estates over just ONE million dollars.


Marriage Penalty
Current: None Under $150,000
McCain: None Under $150,000
Obama: Full Penalty from Dollar One

The “marriage penalty” refers to a married couple paying a higher amount of combined income tax than if they each filed taxes as single. McCain wants no marriage penalty for couple making less than $150,000. Obama wants the penalty to start with the first dollar they earn.


Child Tax Credit
Current: $1000
McCain: $1000
Obama: $500

Basically, Obama would cut the current child tax credit in half. McCain would let it remain the same.


AMT Rate [Alternative Minimum Tax]
Current: 28%
McCain: 0% (Repealed)
Obama: 28%

The “alternative minimum tax” (AMT) requires taxpayers to calculate their taxes two ways, and pay whichever method results in a higher tax owed. McCain would do away with the ATM


Self-Employment Rate
Curreent: 37.9%
McCain: 37.9%
Obama: 54.9%

Self-employed taxpayers pay both ordinary income tax and self-employment tax (Social Security and Medicare). Under Obama, the rate would rise from 37.9% to 54.9%. Under McCain, it would stay the same.


Corporate Income Tax
Current: 35%
McCain: 25%
Obama: 35%

The U.S. corporate income tax is currently the second-highest in the developed world. The average European corporate income tax rate is about 25%


Business Infrastructure
Current: Long and Complex Depreciation
McCain: Full Expensing
Obama: Long and Complex Depreciation

Depreciation/Expensing: It takes larger businesses several years to deduct machinery and equipment, even though they purchase the business asset in year one (e.g. a computer must be slowly-deducted over six calendar years)