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]
Published or updated December 12, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.