SENATOR BARRACK OBAMA'S TAX POLICIES
The following are the current tax proposals that are associated with this candidate:

1. With Respect to Tax Cuts
a.Refundable Making Work Pay tax credit of 6.2 percent of earnings up to a maximum of $8,100.

b. Refundable Universal Mortgage Credit of 10 percent of mortgage interest for non itemizers.

c. First-time buyers tax credit for new farmers.

d. Small Business and Microenterprise Initiative tax credit of 20 percent on up to $50,000 of investment in small owner-operated businesses.

e. Eliminate income tax for senior making less than $50,000 per year.

2. Social Security/Payroll Taxes
a. The Candidate is proposing to increase the maximum amount of earnings that is covered by Social Security, the amount talked about is unclear yet, but the maximum threshold for social security taxes would probably have to be in excess of $125,000 to come close to fixing the social security crisis.

b. There is possible talk of fixing the Social Security crisis by increasing the tax rate and/or increasing the eligible retirement age as well.

3. Revenue Raisers and Tax Havens
A lot of debate had been taking place during the primaries regarding the tax havens and so it is not surprising that the Democratic Candidate has some strong feelings in this area and currently the following represent some of the policy initiatives that are going to be strong on his agenda.

a. Eliminate oil and gas loopholes.

b. Close loopholes in the corporate tax deductibility of CEO pay.

c. Tax carried interest as ordinary, (effectively raising the tax rate on this category).

d. Increase the highest bracket for capital gains and dividends, attempting to rollback back "the so called Bush Tax Cuts" and reverting to a higher tax rate for both capital gains and dividends.

e. Create international tax haven watch list.

4. On Tax Simplification
a. The Democratic candidate is proposing to give all taxpayers the option of pre-filled tax forms to verify, sign, return to IRS.

5. Estate Tax
a. The Democratic candidate is proposing to make permanent the current law that sets the estate tax with $3.5 million exemption and a 45 percent rate tax rate for amounts exceeding the exemption amounts.

6. Alternative Minimum Tax
a. The Democratic candidate is proposing to simply extend and index 2007 AMT patch.

7.Capital Gains
a. Increase maximum capital gains rate to 25 percent.

b. Require information reporting of basis for gains.

c. Eliminate capital gains taxation of start-up businesses and provide capital gains tax break for landowners selling to beginning family farmers.

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So, the 2 parties have marked differences in their tax policy.!

I see Obama will raise both my payroll and capital gains and dividend tax rates!

Great Article TaxGuru!

Nice to see some tax incentatives thrown into this debate, I didn't that both candidates favor simplifying the tax code!

That's refreshing for a change!

Thanks Taxguru! A damn good post!

Estate Taxes going up w/ Obama!!! Wow, and McCain raising exemptions, that is nice, I will never have to pay estate taxes again!

But, that darn AMT taxes, nobody wants to eliminate it!!! Common you guys, be the first one to propose to eliminate and you get my vote!

It would be great if you could kindly give an impact of both the candidates Tax Policy!

I am concerned about how these policies would affect the Economy, Stimulating Capital Expenditure, Job Creation and cutting both the Budget and Tax Deficit!

Thanks TaxGuru!

Thanks TaxGuru!

Great job on researching the material on the tax policies for each candidate.
But, does anybody know the tax impact of each candidates policy on how it might affect the economy both short term or long term?

So with John McCain I will financially go further, keep more tax breaks, my capitol gains won't increase and I will get more relief with dependant deductions.

and with Obama I will work just as hard and earn less so more people can get welfare.

HHHmmmmm!

Clearly we can see who the winner is McCain

Can we really afford another tax increase in this rather difficult environment where being middleclass is now having an income of up $250,000!

Even with this income, after paying for your Federal and State Income taxes and then having to pay exhoribant New Jersey Property taxes, one is left struggling to stay afloat! This after sending 2 kids to college!

To top it off, Obama wants to raise my taxes!!!

No way!!