A longtime friend, a retired CEO of a major life insurance company, sent this "compare and contrast" accounting to me. Because of the source, I assume it is correct although I have not personally verified it.
The two proposals regarding new taxes for home ownership are interesting, and are the primary reason I am posting this here.
10-29-2008: A couple of correspondents have said that the Obama position below is incorrect. His correct position is on his web site. What needs to be noted is that Obama's position has changed many times throughout the campaign.
Proposed Changes by the Candidates in Taxes after 2008 General Election
October 21, 2008
CAPITAL GAINS TAX
MCCAIN 0% on home sales up to $500,000 per home (couples) McCain does not propose any change in existing home sales income tax.
OBAMA 28% on profit from ALL home sales. How does this affect you? If you sell your home and make a profit, you will pay 28% of your gain on taxes. If you are heading toward retirement and would like to down-size your home or move into a retirement community, 28% of the money you make from your home will go to taxes. This proposal will adversely affect the elderly who are counting on the income from their homes as part of their retirement income.
DIVIDEND TAX
MCCAIN 15% (no change)
OBAMA 39.6% increase How will this affect you? If you have any money invested in stock market, IRA, mutual funds, college funds, life insurance, retirement accounts, or anything that pays or reinvests dividends, you will now be paying nearly 40% of the money earned on taxes.
INCOME TAX
MCCAIN (no changes) Single making 30K - tax $4,500
OBAMA (reversion to pre-Bush tax cuts)
- Single making 30K - tax $8,400
- Single making 50K - tax $14,000
- Single making 75K - tax $23,250
- Married making 60K - tax $16,800
- Married making 75K - tax $21,000
- Married making 125K - tax $38,750
Under Obama your taxes will more than double! How does this affect you? No explanation needed. This is pretty straight forward.
- Single making 50K - tax $12,500
- Single making 75K - tax $18,750
- Married making 60K- tax $9,000
- Married making 75K - tax $18,750
- Married making 125 K - tax $31,250
INHERITANCE TAX
MCCAIN 0% (No change, Bush repealed this tax)
OBAMA Restore the inheritance tax
NEW TAXES BEING PROPOSED BY OBAMA *
- New government taxes proposed on homes that are more than 2400 square feet
- New gasoline taxes
- New taxes on natural resources consumption (heating gas, water, electricity)
- New taxes on retirement accounts
- New taxes to pay for socialized medicine
