| Issue | McCain | Obama |
|---|---|---|
| Income Tax | Status quo | More progressive schedule |
| Bottom 20% | $100 cut | $700 cut |
| Middle 20% | $1400 cut | $2100 cut |
| High income | Extend cuts | Return to 2001 levels |
| Loss of income tax revenue over 10 years | $5 trillion (10% of scheduled revenue) | $3.4 trillion (7%) |
| Alternative Minimum Tax | Repeal (another $400 million reduced revenue) | Adjust exemption to inflation (presumably) |
| Capital Gains Tax | Keep rate at 15% | Increase rate to 25% or so |
| Estate Tax | $5 million exemption, 15% rate | $3.5 million exemption, 45% rate |
| Corporate tax | Cut current rate of 35% | - |
| Health care | Detach health insurance from employer | Health insurance exchange |
He added the following remarks.
- Income tax: The top percentile earns 16% of the nation's income, the highest level since the eve of the Great Depression.
- Capital Gains Tax: Low tax stimulates investment but also gives an incentive to make regular income look like capital gains via "tax shelters".
- Estate Tax: Most progressive tax because it only applies to very wealthy individuals. It is also a backstop to income tax sheltering.
- Corporate tax: Our current rate of 35% is among the highest in developed countries which encourages off-shore tax sheltering.
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1 comment:
Of late, McCain has described Obama as a tax raiser. For instance in his speech in St. Paul,
"I will keep taxes low and cut them where I can. My opponent will raise them. I will open new markets to our goods and services. My opponent will close them. I will cut government spending. He will increase it."
We Bean-Stalkers know better - both candidates would cut overall income tax revenue and both would cut taxes for most Americans.
Furthermore the above quote reveals a basic incoherence in the Republican Party that dates back to Reagan. It can be summarized as follows: Given an existing budget deficit we can reduce taxes, increase spending and balance the budget. Reagan represents nothing short of a revolution over Goldwater conservatives.
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