Obama's tax proposals-Mostly Fiction!
Obama's Tax Proposals-Mostly Fiction!
Summary of eRumor:
A forward email that lists what it says are Barack Obama's tax proposals if he were elected president.
This eRumor is a recycled version of one that circulated in March, 2008, about both Barack Obama and Hillary Clinton. It resurfaced as an Obama eRumor in July, 2008.
CAPITAL GAINS, DIVIDENDS
Regarding capital gains taxes, Senator Obama has talked in terms of raising capital gains taxes, perhaps as high as 28%, but that would not apply to homes. U.S. News and World Report's money and politics blogger James Pethokoukis said that Obama is in favor of a significant increase as part of his "Tax Fairness for the Middle Class" plan. In an interview with CNBC in March, 2008, Obama said that he favored raising capital gains taxes from %15% to 20% but no higher than 28%
Both Obama and McCain favor exempting the first $250,000 of gains from the sale of a primary residence ($500,000 for a married couple on a joint return).
So to say that Obama is proposing a 28% capital gains tax on residences is incorrect.
The eRumor claims that taxes on dividends would go up to 39.6%. That is a fabricated number. Neither candidate has ever advocated a 39.6% tax on anything. As stated above, Obama talking in terms of raising capital gains, including dividends, to 20% and no higher than 28%.
The forwarded email than lists what income taxes would look like under McCain and Obama. There is no question that the Obama Democratic proposals will result in higher taxes than McCain's Republican proposals, but the eRumor reports erroneous numbers.
The eRumor starts off giving the wrong figures for current taxes. Here are the numbers from the eRumor compared with the actual tax rates for 2008 from the Internal Revenue Service site:
Single making 30K - tax $4,500--------Actually $4,100
Single making 50K - tax $12,500------Actually $8,845
Single making 75K - tax $18,750------Actually $15,094
Married making 60K- tax $9,000-------Actually $8,198
Married making 75K - tax $18,750----Actually $11,438
Married making 125K - tax $31,250--Actually $23,938
Regarding a comparison of Obama and McCain tax proposals, the Chicago Sun-Times put together its figures in June, 2008.
By their estimates, for example, a person with taxable income of $19,000 or less would pay $597 less under Obama and $19 less under McCain.
A person with taxable income of $19,000 to $38,000 per year would pay $892 less under Obama's plan and $113 less under McCain's.
A person with taxable income between $112,000 and $227,000 would pay $2,300 less under Obama and $3,200 less under McCain.
A person with taxable income of $227,000 would pay $23,000 more under Obama and $15,000 less under McCain.
The eRumor says that the inheritance tax was repealed under George W. Bush, which is not true, although there have been numerous attempts to repeal it.
According to the Chicago Sun-Times article, McCain would seek to lower the inheritance tax while Obama would raise it on estates more than $3.5 million.
A real example of the eRumor as it has appeared on the Internet:
Spread the word…..
This is something you should be aware of so you don’t get blind-sided. This is really going to catch a lot of families off guard. It should
make you worry.
Proposed changes in taxes after 2008 General election:
CAPITAL GAINS TAX
0% on home sales up to $500,000 per home (couples) McCain does not propose any change in existing home sales income tax.
28% on profit from ALL home sales
How does this affect you?
If you sell your home and make a profit, you will pay 28% of your gain on taxes.
If you are heading toward retirement and would like to down-size your home or move into a retirement community, 28% of the money you make from your home will go to taxes. This proposal will adversely affect the elderly who are counting on the income from their homes as part of their retirement income.
MCCAIN 15% (no change)
How will this affect you?
If you have any money invested in stock market, IRA, mutual funds, college funds, life insurance, retirement accounts, or anything that pays or reinvests dividends, you will now be paying nearly 40% of the money earned on taxes if Obama become president.
The experts predict that ‘higher tax rates on dividends and capital gains would crash the stock market yetdo absolutely nothing to cut the deficit.
MCCAIN (no changes)
Single making 30K – tax $4,500
Single making 50K – tax $12,500
Single making 75K – tax $18,750
Married making 60K- tax $9,000
Married making 75K – tax $18,750
Married making 125K – tax $31,250
(reversion to pre-Bush tax cuts)
Single making 30K – tax $8,400
Single making 50K – tax $14,000
Single making 75K – tax $23,250
Married making 60K – tax $16,800
Married making 75K – tax $21,000
Married making 125K – tax $38,750
Under Obama your taxes will more than double!
How does this affect you?
No explanation needed. This is pretty straight for ward.
MCCAIN 0% (No change, Bush repealed this tax)
OBAMA Restore the inheritance tax
How does this affect you?
Many families have lost businesses, farms and ranches, and homes that have been in their families for generations because they could not afford the inheritance tax. Those willing their assets to loved ones will not only lose them to these taxes.
NEW TAXES BEING PROPOSED BY OBAMA
* New government taxes proposed on homes that are more than 2400 square feet.
* New gasoline taxes (as if gas weren’t high enough already)
* New taxes on natural resources consumption (heating gas, water, electricity)
* New taxes on retirement accounts and last but not least….
* New taxes to pay f or socialized medicine so we can receive the same level of medical care as other third-world countries!!!