SENATOR JOHN MCCAIN'S TAX POLICIES
The following are the current tax proposals that are associated with this candidate. 1. With Respect to Tax Cuts
a. Allow first-year deduction of 3 and 5-year equipment, deny interest deduction (expires)
b. Reduce maximum corporate tax rate from 35 percent to 25 percent
c. Increase the dependent exemption by 70 percent (phased in)
d. Suspension of the federal gas tax (18.4 cents per gallon) from this Memorial day until Labor Day.
b. Ban internet and cell phone taxes. Clearly a response due to the fact that Congress was looking to enchance tax revenues by taxing these areas.
2. Social Security/Payroll Taxes
The Candidate has not yet provided substantive detail regarding whether he wishes to increase the Social Security Threshold amount but has provided the following details of his plan.
a. Require a 3/5 majority vote in Congress to raise taxes. This is an Interesting idea that will protect individual taxpayers from facing a wrath of tax increases on their earnings.
b. The Candidate is proposing higher premiums for Medicare prescription drug coverage for single people earning more than $82,000 and couples earning more than $164,000.
3. Revenue Raisers and Tax Havens
A lot of debate had also been taking place during the primaries regarding the tax havens by both Political parties and so it is not surprising that even the Republican Candidate has also expressed some strong feelings in this area and like his opponent has some policy iniatives that are going to be strong on his agenda.
a. Eliminate oil and gas loopholes.
b. Eliminate earmarked projects from the budget, freeze nonmilitary discretionary spending for one year, eliminate programs. Senator McCain has been a strong proponent of eliminating earmarked projects as being wasteful and has indicated that this would be strongly opposed by his administration.
4. On Tax Simplification
a. The Republican candidate is proposing to give taxpayers the option of an alternative tax system with two rates and larger standard deduction and personal exemption
5. Estate Tax
a. The Republican candidate is proposing to make permanent estate tax with $5 million exemption and 15 percent rate tax. This is a radical proposal and quite a costly proposal as there will considerable loss of tax revenues emanating from this proposal. But, the upper-middle class would be spared the wrath of Estate Taxes.
6. Alternative Minimum Tax
a. The Republican candidate is proposing to extend and index 2007 AMT patch. Furthermore, he is planning to increase the AMT exemption by 5 percent in excess of inflation after 2013.
a. The Republican candidate is proposing to maintain the current rates on dividends and capital gains. He does not favor tinkering with these rates as it will affect investment decisions (CapEx) by Corporate America, and in this struggling economy does not wish to bring in additional uncertainty in this area.
Click the link below to view Sen Obama's Tax Policies.
What are Senator Obama's Tax Policies?