John McCain

Barack Obama

Defining Idea (Highlights)

Keep tax rates low – keep the top marginal tax rate at 35 percent, and keep dividends and capital gains taxes at 15 percent.

Endorses “Making Work Pay” Tax Credit: $500 per person, or $1, 000 per family to offset payroll tax on first $ 8, 100 of income

Bush Tax Cuts

Make current rates permanent

Reverse tax cuts for households with incomes over $250,000

Estate Tax

Raise exemption level to $10 million and tax at a flat rate of 15%

Raise exemption level to $3.5 million and tax at the top rate of 45%

Capital Gains Tax & Dividends Tax

Keep current rate of 15%

Eliminate capital gains tax for start-up businesses; raise capital gains tax to 20% for incomes greater than $250,000

Corporate Tax

Reduce rate to 25% from the current 35%

No specifics

Alternative Minimum Tax (AMT)

Eliminate

Extend and index 2007 AMT patch

Child and Dependent Tax Credit

Double personal exemption for dependents from $3,500 to $7,000.

Make refundable and expand the child tax credit to cover 50% of childcare (up to $6,000) for low-income families