Obama
- Expand 10, 15, 25, and 28% rate brackets
- Restore 36% and 39.6% rates for highest incomes
- Increase capital gains rates from 5% to 10% and from 15% to 20 or 28%
- Tax "carried interest" earned by private equity & hedge fund managers as ordinary income
McCain
- Make Bush tax cuts permanent
- Require 3/5 Congressional majority to raise taxes
CUTS/CREDITS
Obama
- Permanently adopt current rules for marriage penalty relief, expanded Child Tax Credit, and expanded Adoption Tax Credit
- Eliminate tax on seniors earning < $50,000
- Expand EITC
- Create refundable "Universal Mortgage Credit" equal to 10% of interest payments for non-itemizers
- Expand Saver's Credit; make refundable
- Create refundable "American Opportunity Tax Credit" for first $4,000 of college costs
- Make R&D Credit and R&E Credit permanent
- Expand Production Tax Credit for 5 years; add incentives for renewable energy
McCain
- Raise personal exemption for dependents to $7,000
- Expand first-year expensing for new equipment and technology
EMPLOYMENT TAXES
Obama
- Impose Social Security tax on employment income over $250,000
- Create refundable "Making Work Pay" tax credit of 6.2% of earnings up to $8,100]
McCain
- No Changes
ESTATE TAX
Obama
- Freeze tax at 2009 levels
McCain
- Cap tax at 15% on estates over $10MM
ADMINISTRATION
Obama
- Give taxpayers option to accept IRS-completed forms to verify, sign, and return
McCain
- No Changes
AMT
Obama
- No Changes
McCain
- Permanently repeal AMT
HEALTHCARE
Obama
- Create national public plan for individuals and small employers
McCain
- Eliminate tax breaks for employer-provided health insurance; replace with tax credits (($2,500/individuals, $5,000/families) for buying insurance
