Taxes

Today I begin the new section of my blog. I did a little research on where the candidates stand on taxes. All of my information is from CNN or Washington Post.

McCain:
Will make the 2001 and 2003 tax cuts permanent.
Would double the exemption for dependents

The net result: compared with their tax bill today, taxpayers on average would see their tax bill cut by nearly $1,200. That means their after-tax income would rise by 2%.

Those in the lowest income groups would only see their after-tax income rise by less than 1% (or between $19 and $319). By contrast, the highest-income households - those with incomes of at least $603,000 - would see a boost in after-tax income of 3.4%, or more than $40,000.

Obama

Would keep the 2001 and 2003 tax cuts in place for everyone except those making more than roughly $250,000

Obama would also introduce new tax breaks for lower and middle-income groups. Fro example, expanding the earned income tax credit, giving those making less than $150,000 a $500 tax credit per person on the first $8,100 in income, giving those making under $75,000 a 50% federal match on the first $1,000 of savings, and exempting seniors making less than $50,000 from having to pay income tax.

The net result: compared with their tax bill today, taxpayers on average would see their tax bill cut by nearly $160 under Obama's plan. That means their after-tax income would rise by 0.3%.

Those in the lowest-income groups would enjoy the biggest after-tax income rise as a percentage of income - between 2.4% and 5.5% (worth between $567 and $1,042). By contrast, the highest-income households - those with at least $603,000 in income - would see a dramatic decline in their after-tax income - a drop of 8.7%, or $116,000.

Check out this chart I found:


Enjoying the political process,
Jenna