Presidential candidates' tax policy

OCTOBER 29, 2008 - 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

Copyright © 2020 WPVI-TV. All Rights Reserved.