Presidential candidates' tax policy

October 29, 2008 5:39:47 PM PDT
As the presidential election draws near, Action News is examining where the candidates stand on the big issues.In these last days before the election, the candidates are throwing closed fist punches over taxes. But beyond the sniping, here's what they'd do:

McCain says he won't raise anyone's taxes. Most of his targeted relief goes to businesses and to Americans building and passing on a family estate or company.

The Republican candidate would:

*make the Bush tax cuts permanent across all tax brackets
*increase the exemption for dependents from $3500 to $7000 by 2016
*cut the capital gains tax rate in half, to 7.5%, for two years and then maintain it at the current 15%
*drop the the estate tax rate from 45% to 15%. And increase the exemption from it, from estates worth less $1 million to those worth $5 to $10 million
*and lower the corporate tax rate from 35% to 25%

Obama, on the other hand, gives tax relief mainly to middle and low-income families and small companies. Others will see their tax bill go up. The Democratic candidate would:

*end the Bush tax cuts for individuals making more than $200,000 and families making more than $250,000
*eliminate taxes for seniors making less than $50,000
*increase the capital gains tax rate from 15% to 20% for people making more than $200,000
*keep the 45% estate tax, but increase the exemption from it from estates worth less than $1 million to those worth $3.5 to $7million
*exempt start-ups and businesses making less than $250,000 from the 35% corporate tax rate