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By CJP | June 10, 2008
 If you’re wondering what your tax bill is going to look like when we get a new president, you’ve come to right place. Let’s break it down by candidate. These are the highlights:
Under President McCain’s best-case scenario:
- Bush tax cuts stay in place past 2010 (when they’re set to expire).
- The Alternative Minimum Tax (AMT) will be phased out, thus giving many middle class taxpayers about $2,000 more in their pockets.
- Corporate tax rates get cut from 35% to 25%.
- It will take a 3/5 majority for Congress to pass any tax increase.
Under President’ Obama’s best-case scenario:
- $500 annual tax credit for just about anyone with a job- that’s 150 million people.
- Seniors making less than $50,000 will pay NO income tax.
- Tax increase for anyone making more than $250,000.
- Tax increase on capital gains, dividends and carried interest. If you don’t know what carried interest is, this doesn’t apply to you or your hedge fund. Also, if you have an oil company, take a Xanax.
- Lots of other tax credits to cover the cost of child care, college, and other daily expenses.
Things to keep in mind about both of these:
- The Concord Coalition says BOTH plans will increase the $9.5 trillion federal debt because McCain’s cuts revenue and Obama’s increases spending. Both campaigns dispute that.
- Both candidates have to get their plans through a likely Democratic Congress.
- AND, John McCain used to be against the Bush tax cuts, but he’s for them now. He (and a kind reader who wrote to correct CJP on this point) says that he opposed the Bush tax cuts in 2002 becuase they were not accompanied by spending cuts, which he says he’ll deliver as president.
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