Now that we’ve looked inside the financial reports of the major candidates for President of the United States, let’s take a look at the Democrats’ plans for reworking the income tax system if elected. They are as one would predict, very similar.
Hillary Clinton wants to eliminate the “Bush tax cuts” for those earning more than $250,000 (and provide fewer opportunities for deductions) while preserving the cuts for everyone else. She wants to limit tax-free compensation for high-income earners to help pay for health insurance. She would like to raise the rate for the “carried interest” tax, a loophole that lets some fund manage claim their income is a capital gain.
Barack Obama would eliminate income tax for seniors earning less than $50,000, and like Clinton, would let the Bush tax cuts expire for those earning more than $250,000. Obama will also raise the tax rate for carried interest.
John Edwards would let the Bush tax cuts expire for those earning more than $200,000 and categorize fund managers’ pay as regular income, not carried interest.
Your income taxes: What the candidates want [CNN Money]
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As far as I know, there is no way to let the tax cuts expire for a particular group. What will have to happen is that they will have to completely expire, for everyone. Then, they could establish new tax rates through legislation.
Did you read Mark Cuban’s thoughts on these tax proposals?