Obama's Tax Policies- "CNN.com"

This is just a summary there are over 21 pages of information on CNN. Just click on the link below for more particular information.


The Basic Summary


Opposed extending 2003 Bush tax cut law through 2010.



Supports eliminating marriage penalty and extending child tax credit.



Proposes a "making work pay" tax credit of up to $500 per person, or $1,000 per working family.



Proposes eliminating income taxes for seniors making less than $50,000 per year and eliminating all capital gains taxes on start-ups and small businesses.



Says he would reform the child and dependent care tax credit by making it refundable and allowing low-income families to receive up to a 50 percent credit for child care expenses.



Favors tax cuts for middle-class workers and tax increases for top earners. Says he would restore the top two income tax rates to their pre-2001 levels of 36 percent and 39.6 percent. (Currently, they're 33 percent and 35 percent.)



Says he would maintain the estate tax but would freeze the estate tax exemption amount at $3.5 million.



Proposes to create an "American opportunity tax credit," which the Obama campaign describes as "a fully refundable credit" that "will ensure that the first $4,000 of a college education is completely free for most Americans and would cover two-thirds the cost of tuition at the average public college or university."



Personal Taxes



·Would let government negotiate for Part D drug prices.

·Would increase use of generic drugs in Medicare. ·Wants to close the coverage gap known as the "doughnut" hole in Part D for reimbursement of prescription drugs. ·

Favors eliminating subsidies paid to private Medicare Advantage plans.

·Wants to legalize importation of some prescription drugs.



"As president, I will reduce costs in the Medicare program by enacting reforms to lower the price of prescription drugs, ending the subsidies for private insurers in the Medicare Advantage program and focusing resources on prevention and effective chronic disease management." -- Obama **



Taxing Wealth



· Tax carried interest as ordinary income rather than as an investment gain, thereby subjecting it to much higher tax rates than 15%.



· Freeze the exemption amount of estates free from the estate tax at $3.5 million -- where it will be in 2009.· Freeze top estate tax rate at 45%.



· Raise capital gains and dividend tax rates to 20% from 15% for couples making more than $250,000 and singles making more than $200,000.



"We've lost the balance between work and wealth. I will close the carried interest loophole, and adjust the top dividends and capital gains rate..." -- Obama**



Business Taxes



· Leave all tax cuts in place for everyone except couples making more than $250,000 and single filers making more than $200,000. Those high-income groups would see their top two income tax rates revert to 36% and 39.6% from 33% and 35% respectively. And their capital gains and dividend tax rates would also revert to 20% from 15%.· Introduce new tax breaks for lower and middle-income households."We shouldn't be distorting our tax code to benefit a few powerful interests -- we should be insisting that everyone pays their fair share, and when I'm president, they will." -- Obama**

All information found from the CNN Political (Issues) website

http://www.cnn.com/ELECTION/2008/issues/issues.taxes.html