Obama Tax Cut Calculator Shows Facts On Savings

Armen Hareyan's picture
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As the presidential election nears to conclusion many Americans are using various tax calculators trying to understand the real and hard facts of how many a family or an individual may save in taxes under Barack Obama's or John McCain's health care or tax cut plans.

Barack Obama has made the job of those Americans easier by creating what is called and Obama Tax Calculator. Simply put your financial numbers into the tax calculator and see the results of how many you or your family can safe under Barack Obama's tax plan.

Aaron and Mary in their blog share their experience after using Obama Tax Calculator below:

"Merri and I put in our numbers for our family to see what “Tax Savings” would look like compared to what we’re paying now and to see what the savings would be in an Obama vs. McCain plan. We’d save $1800.00 (or more) in taxes and a $4000.00 credit for Merri being in college with Obama’s plan. Not to mention the child credits may even get better."

Taxcut.barackobama.com reads that "Barack Obama and Joe Biden will cut taxes for 95% of working families, and provide at least three times as much tax relief for middle class families as John McCain and Sarah Palin. The Obama/Biden plan provides $1,000 of tax relief for workers and new tax benefits to help families pay for college, childcare and save for retirement."

However, now let's see where the candidates stand on their tax cut plans. NorthJersy.com has calculated and put together the following:

Income taxes

McCain: Permanently extend tax brackets lowered in 2001 and due to expire after 2010. Phase in increase in dependent exemptions. Reduce to 10 percent tax on first $50,000 in withdrawals from IRAs in 2008. Suspend rules requiring distributions from IRAs at age 70 1/2. Replace employer-provided health benefits exclusion with refundable credit of $2,500 for individuals and $5,000 for couples.

Obama: Extend lower 2001 tax brackets for individuals making less than $200,000 and couples less than $250,000, and above the current 35 percent bracket reintroduce 36 percent and 39.6 percent brackets on upper wage earners that existed before 2001. New refundable credit for workers of up to $500 for individuals and $1,000 for couples. Refundable tuition credit of up to $4,000 a year. Eliminate taxation of unemployment insurance. Make child and dependent care tax credit refundable and equal to 50 percent of child care expenses less than $6,000. Mortgage credit up to $800 for non-itemizers.
Alternative minimum tax

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McCain: Make current exemption levels permanent and index to inflation, then begin to increase exemption by 5 percent a year starting in 2013.

Obama: Make current exemption levels permanent.
Capital gains

McCain: Reduce rate on long-term capital gains to 7.5 percent in 2009 and 2010. Increase amount of capital gains that can be deducted against ordinary income to $15,000 in 2008 and 2009.

Obama: Increase maximum capital gains rate to 20 percent for individuals making more than $200,000 and couples more than $250,000.
Estate tax

McCain: 15 percent on estates worth $5 million or more (0 below that level)

Obama: 45 percent on estates worth $3.5 million or more (0 below that level)
Business taxes

McCain: Reduce maximum corporate tax rate from 35 percent to 25 percent over seven years. Unspecified elimination of loopholes to broaden corporate tax base. Eliminate oil and gas loopholes. Bar taxes on Internet service.

Obama: Limit deductibility of top executive pay. Tax carried interest as ordinary income, not capital gains. Eliminate oil and gas loopholes and impose windfall profits tax. Crack down on companies sheltering income in offshore subsidiaries. Require employers to provide health insurance or pay percentage of payroll to support national coverage. Give small businesses health-care tax credit of up to 50 percent of employer-paid premiums.

Obama Tax Calculator shows only his plan, but an independent tax organization Tax Policy Center has listed 32 different changes for Obama and 19 for McCain, which therefore; will make a simple calculation of winners and losers impossible.

Obama’s tax calculator is “a very simple gadget that’s the most useful thing I’ve seen on any political website in a while.” [Forbes.com, 10/08]

See Obama tax calculator here.

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Comments

How do you use the tax calculator? Does the Obama Tax calculator also factor the health care expences?
God help America if Obama is elected president and turns his back on Isreal! Plus as a single white male with no kids ever/I have always been taxed too death. Why should I keep paying for kids and welfare for others that can not keep there pants zipped up and do not want too work/because they are so used too free everything, all their life. I have too work hard as a single white man/ I never made any kids too burden the system/and even when sick i still work. I have no parents or relatives too back me up If i fail. It seems all my life I am here only too support those who are either here without papers/making babies like rabbits/home grown people who do not want too work. But make babies too collect money from the government /since its been so easy too do. When do I get a break and get too keep my hard earned money? Tim
I have a slight idea of who you might be voting for Nov. 4th... Anyways, the reason why it has to be this way is because, being a single hard-working white male, I'm pretty sure, just observing the incorrect usage of "too" througout your entire comment, that you probably don't make 250,000.00 a year. Guess what Tim, all of the people who are making less than that and making more than the people you put down on welfare, are ALL COLLECTIVELY picking up the slack for both sides. McCain, Palin, and and no other Republican care about you, they don't care about Joe the Plumber, they don't care about Tito the builder none of that, but why make the situation worse? Why not attempt to bridge the gap. You're right Obama is pulling out the floor a little, but you're still covered, unlike McCain, who's trying to pull the roof up, you're going to be exposed, and trust me, you're not going to be hanging on to the ceiling when the roof is coming off, you'll be getting rained on just like everybody else who "collects welfare". Actually take a look into it, would you rather be spending all of your money to help the wealthier and those better off than you, or would you rather help yourself and those around you. You can't get mad at the system, at one point in your life, the system helped you out. If it was up to these Republicans, we'd be carrying them on our backs from Neiman Marcus to family barbecues. Get it right, Obama is the man and we will win, and unless you're loaded Tim, that will make you a winner as well! Holla back! Shantal
First, you are making assumptions that people on welfare want to be on welfare. I am a single black female with no children, I get taxed through the nose and pay more in taxes than welfare recipients get in a year. The government are not giving them that much money where they just want to stay there. We are not talking about real costs. What about the $10 billion being spent in Iraq for a personal vendetta the president had agains Saddam Hussein? Just think of how much $10 billion a month could have impacted our schools and health care system. What about the millions of dollars CEO's get to keep when the companies they were in charge of go belly up? Tim your tax dollars are not all going to welfare recipients, but to pay back China for the billions of dollars they loaned us for that war that made absolutely no sense. Your tax dollars are going in the pockets of CEO's who are getting millions in serverance packages for messing over and lying about it. Didn' t see you complain about them. Didn't hear you complain about the republican failed economic policy. But you want to complain about the few dollars people who need assistance are getting. Right!
Tim, you are exactly right. Any Christian will know what's going on. The Bible states that you are to work if you are able and to care for yourself and family. It also states that if you are able to work and don't then you don't deserve to eat. God abhors LAZY people. If this country does not stand with Israel, it will be defeated by GOD. God bless you Tim for speaking the truth. GT
What world are you living in Tim? In order to speak on a subject one should educate one self on the subject. There are more whites than blacks on welfare.Why you would ask? Simply because there are more whites in America than there is black by far. This is the United States of America not, White America.The benifits are there for all who need it. Grow up already, who the hell is use to free anything, not blacks.In all cultures some work,some work harder and then there are those people who don't fit any color barrier, they are just free loaders. Why are we even talking about this lazy people don't even file taxes. So next time you want to go making assumptions like that, get your facts straight and think things through before making statements like that.
i just wanted to set the record straight for the census of july 2008 there are just as many blacks as there are whites in the united states look it up
First of all, Obama will not turn his back on Israel. If that were true, he would not have as many Jewish voters as he does. Second of all, your taxes will not be raised if you make less than $250,0000 a year. Please just use some common sense here. lolita
Tim Loaded? Please he does not even know the difference between to and too or how to incorporate them in a sentence or phrase for much less. That is an attitude of a person who feels superior to anyone else. You ask "why should i keep paying for kids"?, let me answer your question you were once a child, you were not born a "single white male" and those same tax dollars you are bitching about supported you and your education and who knows maybe at one point your family was on welfare. Another reason why you should keep paying for kids as you mention its because they are the future, your future . Being on welfare is nothing to be ashamed of, at times people have to live through circumstances beyond their control, and they have paid taxes just like you and use them for these circumstances. I myself lived on welfare for 6 months after my daughter was born and I was laid off from my job, since then I am now making almost 100K a year and am not any less of a person for having lived on welfare. But go ahead and vote for McCain its a free country, its not going to be any less than the last 8 years, Bush has thrown this country to the ground and McCain is going to do the same. We need CHANGE and if it takes a BLACK man to provide this change then so be it. VOTE OBAMA!!! E
I'm soory that you feel that people on welfare need it.. YES, there are those who need help when they lose a job. Are you taking in concideration of those who LIE, CHEAT and STWEL from the system. Let me tell you when I lost my job, applied for unemployement and needed the extra help that welfare offered, I was told that I make $2.00 too much a month. I have three children a mortgae and a car payment. I was told to sell my car!! Living in Valley City (there's no buses) without a car for transportation??? not everyone has the support of family sometimes it just you and your kids. So you want change do something about it, but don't vote for someone who hasn't a clue on how to run a country let alone a single state.
how do you say onn cnn, go to taxcutfact.org and there is nothing like that on line? I was on that web page and it's all bull----. I was run all over the place with people trying to sell me everything from t shirts to signs. Shame again
Using this tax calculator you get a more exact figure: alchemytoday.com/obamataxcut/. Under this calculator, my family saves much more with McCain than Obama.
you know it is funny when you want the un educated to vote for you, all you have to do make it easy for them (even if not true!) to see money in their pocket that you "WILL BE GIVING THEM". You know Obama's calculator is majorly flawed and well it doe’s not account for the taxes he is going to hit us with to provide a socialistic society, I think that is called Communism! Also too, it really bothers me (being from IL) at all the horrible things he had done in the past to ruin that state and none of that has not come to light! McCain has his flaws and he needs to listen to Palin a little more, but all in all he is a good guy at heart and not a Busch kiss ass but a good party person who plays by the rules to get the chance to make a real difference. He has always been a MAVERICK in the Republican Party and is a peace lover but not afraid to stand up and fight. The rest of the world respects him and terrorist fear him, he is like a Ronald Regan but not nearly as well spoken. Dollar for Dollar - McCain has talked of nothing but cutting taxes for everyone and in our weakened and beaten up economy that is what we need. Create jobs, focus on infrastructure, DRILL BABY DRILL and develop green technologies at the same time. Break our dependency of foreign oil while maintaining free trade environment to capitalize on other markets with the weaker US dollar. We are sitting the cusp of a major change in history and one false move could put us at the bottom of pit and the timing is bad but we need to focus on the real goals here – SAFTEY! Economy! Infrastructure! Democracy! It really bothers me that Obama wants to take control of all money in the US and distribute it how he sees FIT! The calculator he has does not add all the taxes he is going crush us with and if my math is even close to right, he will destroy Middle Class America and Business of all kinds large and small by pumping all money back into the welfare system. He better do that because by the time he is done, NO ONE will have a job and we will all need welfare in his utopia! Obama is playing the popularity card and talks a mean game but he could not do it in IL and he will not be able to do it for this country. It is sad to see him pray on those that are not as intellectual as others. He is putting bad information out there with bad data to mislead the public and by the time the all realize he has swindled them with lies it will be to late. Good bye healthcare it will be socialistic medicine. Good Bye American dream, because “If you can Make It, Obama’s Going to Take It!” Mean While John McCain has headed up his state, which is one of the fastest growing places in the US with one of the strongest Economies in our Country! No one talks about this but it was his design and his architecting that got them there. While I feel McCain needs to work on his economic plan a lot more and Obama has some very good ideas in principle, as a leader and a clear path forward McCain is the lesser of two evils and Obama is a dreamer that has no clue on how to make them come true with out destroying everything else. Obama’s plan is to fragile and right now what this country needs is Rock Solid! GO FIGURE - DO WE FOLLOW THE PIDE PIPER FROM ILLNOIS WITH THE FAILED SYSTEM OR FOLLOW THE FACTS OF WHAT HISTORY HAS SHOWN US ? – MCCAIN MAKES MONEY FOR US ALL Good Bye American dream, because “If you can Make It, Obama’s Going to Take It!”
OMG! I have read several of these comments! Wow! Yours hits it all on the nail! I have been saying the same thing since this whole thing started! (believe me it started a long time ago for those of us in the state of IOWA!) While McCain would and was not my first choice in the beginning, I have made it a point to listen here when it was clear who would be the republican nom. There is something about Mr. Obama that just doesn't sit right with me and hasn't from the beginning. (the last time that I felt this way, it was when clinton taught my young tender children about oral sex. and "did not have sexual relations with that woman, .....) While I hope I am so very wrong, I too feel that we are in more trouble than we even know if Mr. Obama gets elected.
Well ---- I'm a 60 year old white male that makes $30,000 per year and I have no medical insurance. I may be of the old generation, but I have enough common sence to vote for the person that really has my interest at heart. All you have to do is listen to the facts that is presented by both candidates. Obama is much much better than McCain, and --- who in their right mind would take a chance of Pailen ever being President !! As far as people on welfare -- I'm sure that they would like a taste of the good life and do not wish to be poor.
Do you all truley believe that you will ever see TAX CUTS ? This country is in serious financial trouble caused by both parties.Bad mortgages to people who couldn't afford the payments in the first place. Wars we should not have been in. Golden Parachutes for CEO's that still exist even though they said they were going to change that .Wake up people you, your children and their children will be paying for this. And by the way whom ever becomes President will only last 4 years because it is not going to get any better. Term limits for the congress and senate are needed to get rid of the same old same old then you will have change. Did i mention the additional 150 billion in pork added onto the bailout. Do you see any money going to the homeless? Disgusted in VA
what about people who make less than 20,000 a year like i do i dont here no body talking that i guest thats not important to no body we are the ones that need the help can we get some help or do we have to keep suffering
Thats the problem, people like you sit around and wait for the government to plop money in your lap. If your not happy making 20K or less a year, do something about it, go to school, get a better job, something, but dont sit around and cry about the economy waiting for a Obama the savior to get elected. Yes this economy is in bad shape, everyone is feeling it including myself! I will make about 55,000 this year which is bad for me, I dont have a college education, only high school. I sell cars for a living, Toyota's! Im used to making 100K a year plus, but I will be damed if I sit around and cry about it, bottom line is if your not happy making less than 20K a year, do something about it......nobody is going to help you until you help yourself...........vote republican, not everyone can be on welfare!
The tax cuts that senator Obama will help the poor. He will cut taxes and use the money to put into schools and programs for people who did not use some of the opportunities that would of enabled them to earn more than 20,000 a year. I feel for you, but you can't blame the government for your lack of finances. Do something about it. Enrolle in school and get a degree in something or a trade in something and I will assure you that you could definetly make more than 20,000 a year.
you probably don't pay federal taxes....you probably pay more in FICA...Social security. Nobody needs help we just need the government off our backs so we can do it ourselves.
get an education and a bettter job !!!!!!!!! Everything has been provided.. grants, loans, daycare, housing, If you don't do the work you've got no one to blame but yourself. Why does someone else owe you a better life ? I didn't go to college and I take full responsibility for not getting further . It's no one's job to bail me out of that. I went to work in a bottom level job, worked circles around everyone, skipped meals and was late on my bills over and over, but, I didn't stop. I now make $45,000 yr and , while I'm not wealthy, I never took from anyone. It's called pride, something the " gimme " generations never learned. I will never give up my pride to accept Obama's socialism.
i want to figure my tax help via/Obama tax calculator
Most of you are praising Obama like he's the next coming of Christ. As an Illinois resident he hasn't done one thing for Illinois that has been good. He became Senator for Illinois and hasn't given a vote on anything, hasn't done anything for the state. Since he became Senator he has pretty much been campaining for president. Everyone wants to blame the president and the republicans for the economy but it was President Clinton who signed our jobs away in this country. Doesn't anyone remember NAFTA? It has been spiraling out of control since. Also, since the democrats have had the majority in Washington, the gas prices have gone up, the economy has failed. Obama is a socialist and he will ruin this country even worse than it already is. It's easy for everyone to tell someone to get an education and find a job. I have an education and I have been laid off from my job and I am having a hard time finding a new job. Wake up people there aren't any jobs. People are losing jobs left and right and it isn't just the republicans who have done this, it's also the democrats. The Democrats are the majority in Washington so if anything gets passed it's because of them. Which means it was the Democrats who voted to give all that money to the big corporations while WE THE PEOPLE are trying to pay our bills and feed and clothe our children. There are simple solutions to help this economy but the government wants to tax us to death to keep us down and them in control. The job solution is simple, get rid of FEMA and the money that is used for them could be used to give the average citizen a job to help rebuild the areas that have been hit by a natural disaster. There are plenty of natural disaster areas in this country that need rebuilding and giving the people in these areas jobs. Also, the other solution is to get rid of everyone in Washington including Obama and McCain and not have a higher level of government and stick with just the local politicians. They are the ones that get stuff done. We as voting citizens have the right to get rid of these people in Washington by simply voting them out. Let's face it people neither McCain or Obama is the choice for this country. Lynn
WENT TO THE CALCULATOR AND NOTHING HAPPENED .. THE THING JUST SPINS , RELA NICE TAX BREAK ,, NOTHING AS USUAL.. WHAT THEY TELL US IS USELESS, CONGRESS RUNS THINGS AND THEY ARE NOT GIVING ANYONE A BREAK.. JEFF
You go Anonymous! All decent folks need to stand up for each other. I must say that you're very intelligent and told Tim more than he needed to read!!!
I say that because if you are a true christian and know the beliefs of a Muslium you know what I'm talking bout. Facts are facts. When the rich spend money everyone spends money. When the rich get taxed and stop spending then everyone hurts. Most everything Busch has done needs to go through the House and the Senet, which is controled by those sorry Democrates. Which I might tell you was in control of for the past 4 years. How can you vote for someone that doesn't honor the American Flag or hold his hand over his heart during the Pledge of Allegiance.(sad days are coming) Everyone one should know that for every high there is a low. We have beeen on world wind of highs the last few years(autos, real estate, stock market,etc....) and for every high there must be a low. A system of checks and balences. Most of you dumbies sit back and watch to news and think that what you are hearing is the gospel. WRONG!!!!! The news tells you what they want you to hear. Its not the news of old times. As far as a bunch of Mexican coming over and takeing jobs. Well at least they are working to better themselves. Send the sorry ass Americans that should be working that are not and send them to Mexico. I work in the Hood so they call it and see sorry ass people that should and could be out working. They ride the Walfare system and social sec. system and want more. GET OUT AND WORK!!!!!! The sad thing is that if NoBama don't get elected it will be the biggest racial war ever. The Blacks will say it is racism and Al Sharpton and the NAACP( which is worst than the KKK will ever be) will hold rallies and riots all over the US.
I doubt you live in the HOOD, your mis-spelling is indicative of a racist trying to convince people that you are Afro-American and want to persuade people to vote for the GOP. Get a life! Also Anonymous!
First, you should learn to spell. Second, you should read the Bible, just a bit more! You clearly, no nothing about the Muslim faith, hint: Abraham and Isaac. Third, even if Obama was a Muslim, there is a little thing in our Constitution about the separation of church and state, which means that religious preference has nothing to do with an individual's ability to represent their constituency (don't even get me started on the, "Defense of Marriage, bills proposed! The word 'marriage' should be removed from all legal, and government terminology, as it is clearly a religious sacrament, one that I wholey, and holy, I believe in, married for 22 years in the Catholic Church, though, in terms of our government, it's nothing more than a legal contract! And in my opinion again violates the separation of church and state doctrine! But, I'm not a Supreme Court Justice. So, what exactly are you defending? Assets?) among other American values (remember 8th grade history?); by the way, the fact is, Obama is a Christian, not that has anything to do with his qualifications to be president. Lastly, it amazes me the extent to which those who have responded on this site, appear to be "Christians," yet they harp on the Old Testament! Get a clue, the New Testament, should be your focus. OK, judge not lest ye be judged, I sincerely apologize, but really! Wasn't that what Christ was all about? Brothers keeper, etc., etc.! The progressive tax structure has been in place for many decades prior to George W. Bush; I believe it was the Teddy Roosevelt era. In 2010, Bush's "temporary" tax cuts to those making $250,000 a year or more is set to expire, so technically, Obama is not going to raise anybody's taxes! Bush, proposed, and in a Republican dominated Congress, passed this measure to stimulate the economy! How's that worked out for everyone!? Please forgive my rant! Clearly, I can't be too intelligent, as I reached this site by mistake; as I'm sure many others of you have, trying to test out the tax calculator. Fortunately, for me anyway, I've actually seen more than one tax plan comparison between Obama and McCain, so I'll go to bed now, knowing that I don't need to depend on this one site to get my answers!
To anonymous, your message sent 10/31/08, at 3;10: You should be voting democratic, since you didn't do well in spelling. Another Anonymous speaking.
What do the majority of people on welfare do with the money they receive from the government? They pay rent, buy food, clothing, and other necessities that goes into the pockets of merchants. Merchants pay city, state and federal taxes for themselves and FICA and Medicare taxes for themselves and their employees. So it would seem that the welfare money does assist people personally but mostly merchants and landlords who get their welfare money. So, how bad is Welfare? What comes around goes around. There are Welfare cheats but the States do investigate and punish many thieves. There are many people who work under the table and don't pay taxes on a portion of their earnings. Good Americans!? Independent contractors, I wonder if Joe the Plumber is in that category. I am not accusing him of not paying taxes just using him as an example since Mcain has used him as his poster boy and has the belief that Joe the Plumber is the typical american worker trying to earn enough to purchase his own plumbing or other business. Are we really a Judeo/Christian country? It was my understanding that the one of the teachings of all or most organized religions was charity.

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