Obama Tax PlansMr Obama has suggested:
- Raising the top income-tax rate from 35% to 39.6% (This is the level before Bush's tax cuts)
- Remove earnings cap on payroll tax. This could lead to a top marginal tax rate rate of 46%
- He also suggests increase capital gains from 15% to 25%
McCain Tax PoliciesMcCain by contrast has focused on promising more tax cuts, such as cutting corporation tax to 10% and keep income tax for the rich high. He promises to pay for these tax cuts through 'spending cuts' But, like many republicans before him, talking about 'spending cuts' is much easier than actually being able to implement them. If the tax cuts were implemented, it is likely the budget deficit (already had dangerous levels) would continue to grow.
But, these policies do present voters with a clear choice. If you own a business and receive a high income McCain will make you better off, Obama will make you worse off. If you on a low / middle income you will be more favoured by an Obama presidency.
It will be interesting to see whether many Americans agree with Warren Buffet's assessment that high income earners deserve to pay more tax.