One in a series on the presidential candidates' positions on issues.
ISSUE: TAXES AND THE ECONOMY
BARACK OBAMA, DEMOCRATIC SENATOR FROM ILLINOIS
Voted for the financial rescue plan in Congress.
Proposes cutting taxes for 95 percent of workers with a $500 tax cut for workers, $1,000 for working couples. Would partially roll back Bush tax cut for people earning more than $250,000 a year.
Proposes raising capital gains and dividend tax rates to 20 percent for two highest tax brackets.
Would maintain the inheritance tax exemption at $3.5 million, with the remainder of the estate taxed at 45 percent.
Voted against repealing the inheritance tax and raising the estate tax exemption to $5 million.
Proposes an economic stimulus plan that includes $20 billion in tax rebates to workers, a $10 billion foreclosure prevention fund and $10 billion in relief to states hit hardest by the housing crisis.
Favors raising the minimum wage and indexing it for inflation, as well as increasing the earned income tax credit.
Favors creating a publicly searchable database of congressional earmark spending.
JOHN MCCAIN, REPUBLICAN SENATOR FROM ARIZONA
Voted for the financial rescue plan in Congress.
Proposes making President Bush's tax cuts permanent. Initially voted against them.
Supports a tax plan that would maintain the top rate at 35 percent and 15 percent on capital gains and dividends. Proposes cutting the corporate tax rate from 35 percent to 25 percent, allowing first-year deductions for equipment and technology investments and establishing a permanent tax credit equal to 10 percent of wages spent on research and development. Promises no new taxes, but says he might be open to a higher payroll tax to shore up Social Security.
Promises to balance the federal budget by 2013.
Voted to phase out the inheritance tax. Now proposes raising the exemption from $3.5 million to $5 million and reducing the estate tax from 45 percent to 15 percent.
Voted to extend tax cuts on capital gains and dividends.
Wants to end congressional earmarks and says he will veto all pork-barrel spending.
– COMPILED BY STAFF WRITER JOHN MARELIUS
