What are the Tax Policies for each Senator Obama?
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.
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.
Last edited by TaxGuru : 07-24-2008 at 07:59 AM.
Reason: Separating the candidates tax policies