Obama Tax Cut Calculator Shows Facts On Savings
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:
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.
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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.
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.
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)
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.