which candidate is better for me tax-wise?

[Anonymous]

I am an undecided voter. I'm trying to research lots of issues to decide who to vote for, but one thing i want to know is which candidate is going to result in me paying lower taxes? I know I should be able to figure this out myself, but I just had twins and can barely keep my eyes open, so I am trying to cheat by asking someone to educate me. I think Obama is going to mean higher taxes for me but I am not sure.
Our HHI is around 400k
Is it true that Obama is doing away with the social security cap?
And are they both doing away with the AMT?
Thanks for any help.

[Anonymous]

Your taxes WILL rise in an Obama administration, and may rise either way.

[Anonymous]

OP, I take your point that your financial well being is something to consider in making your choice, but I think you need to broaden your view of what will be good for you financially. What the candidates have announced regarding taxes are only a component of what you will end up paying for the next 4 to 8 years. The ability to restore economic confidence is enormous here. If this global credit crisis continues, it will impact your retirement, college and any other savings, and it will likely impact your own jobs. Moreover, tax plans are just that. Plans. The plan goes a little awry if you then go and spend $580 billion on a war without end. Things like that do matter financially.

[Anonymous]

Anonymous wrote:Moreover, tax plans are just that. Plans.

And they are only the President's plans. Congress still has a big say in the matter. Beyond that, with the global economy, the well-being of every one of us depends on much more than our government in isolation.

I suggest that anyone who tries to make a decision based on such a limited idea of self-interest is likely to shoot him/herself in the foot.

[Anonymous]

Here's a chart from the Tax Policy Institute in that was in the Washington Post http://www.washingtonpost.com/wp-dyn/content/story/2008/06/09/ST2008060900950.html.

We are in the category that would have a tax decrease from McCain and no tax increase from Obama. However, McCain is not changing the AMT ceilings so we would not really see the decrease anyway. Neither has proposed doing anything about the AMT nor would they since most people don't pay attention to AMT (no idea why but voters don't).

I suspect that both will need to make adjustments though McCain seems worse off on balancing the budget than Obama. Neither were prepared for a trillion dollar rescue plan on top of the trillion dollar Iraq War. Don't forget that when the economy goes south and people start losing their jobs the federal government takes in less revenue. The majority of the revenue comes from the masses not the super rich so the best road to lower taxes is having as many people employed making enough to pay taxes.

States are really hurting right now with the real estate collapse and education will be hard hit. Both will have to do something about the social security cap to deal with the babyboomers who now are even worse off with their 401Ks in the tank.

[Anonymous]

How selfish to vote based solely on how much you will have to pay in taxes. This makes me feel ill to read.

[Anonymous]

For what shall it profit a man, if he shall gain the whole world, and lose his own soul?

[Anonymous]

You might want to upgrade the security system - maybe build a moat -- if the Republicans have their way for another four.

[Anonymous]

Don't forget differences in capital gains taxes and the death tax. Those can also have a huge impact depending on your situation.(though I guess with all the recent losses, not many people will have capital gains this year

[Anonymous]

While McCain is not acknowledging any tax increases in his campaign, I don't know how either candidate can NOT increase some taxes after being elected. We have an ongoing war costing at least $10 billion per month. May be we can borrow some money from the Iraqi government The country is broke.

[Anonymous]

I think taxes will rise in either administration and will likely remain higher. Even without our recent troubles, our entitlement programs (e.g., Medicare) are unsustainable in their current form. Google David Walker's powerpoint and interviews. He's the former Comptroller General of U.S. He did a tour of the nation last year about our looming financial meltdown.

[Anonymous]

McCain may be taxing your health benefits so please keep that in mind.

Also, I feel like people think the day the president is elected the tax rates will change. They may never change. Legislation needs to be written, go through Congress, Senate, rewritten and approved. It just does not become law because it is what the candidates want.

[Anonymous]

I agree that with the substantial change to the economic landscape, tax cuts are going to be hard to balance, and a tax increase is likely no matter who gets in there.

The WSJ has a good analysis of Obama's tax plan.
http://online.wsj.com/article/SB122385651698727257.html

The point that no one hears on TV is that this is in a large part income redistribution - giving money to people who pay NO income taxes, and taking that money from the top 5%. The top 5% might not matter so much in Ohio or Missouri, but in the larger metro areas like DC many of YOU are the top 5%.

[Anonymous]

"The point that no one hears on TV is that this is in a large part income redistribution - giving money to people who pay NO income taxes, and taking that money from the top 5%."

Gee I think I heard something similar..where was it..Oh I know..ALASKA where Palin took millions in earmarks from taxpayers across the country and redistributed it in a check to Alaska citizens who paid NO state tax income tax.

Keep in mind that people making in the top 1% are more affected by business tax incentives and loopholes in capital gains than straight income tax. If you are making several million a year chances are you are doing more with it than just collecting a paycheck.

The idea behind giving more tax relief to the super rich is not that it is morally wrong to give some of the money to programs that fund education, healthcare etc (even though the people who vote along these lines tend to believe it is wrong to help those people) but that the super rich will buy things such as luxury yachts and expensive cars. The trickle down idea is that this will fuel the economy so the people who make those expensive cars will have jobs and then they can pay more taxes. It doesn't work very well.