McCain, Obama Present Different Views on Taxes

[DeepModem Mom]

NYT/Reuters: McCain, Obama Present Different Views on Taxes
By REUTERS
Published: June 10, 2008

WASHINGTON (Reuters) - Republican John McCain and Democrat Barack Obama staked out starkly opposing stances on taxes on Tuesday, with McCain promising corporate tax breaks and Obama pledging tax increases for many. McCain in a speech in Washington accused Obama of seeking the single largest tax increase since World War Two while Obama, in a television interview, said he would increase taxes on the wealthy and on stock profits to pay for a middle-class tax cut of $1,000 a year....

Obama told CNBC that he would raise taxes on Americans making $250,000 a year or more and raise the capital gains tax for those in higher income brackets while exempting small investors. He said the U.S. economy has been "out of balance for too long." "The general principle of raising taxes on higher income Americans, like myself, and providing relief to those who haven't benefited as much from this new global economy, I think, is a sound one," Obama said. But Obama, 46, said he would consider deferring some of the tax increases, depending on the economic situation he inherits from President George W. Bush should he win the November election....

McCain, 71, vowed to maintain Bush's tax cuts, lower corporate tax rates from 35 percent to 25 percent and allow companies to expense new equipment and technology in their first year. He supported keeping capital gains taxes as they are now, doubling a tax exemption for children, and phasing out the Alternative Minimum Tax, which he said would save some 25 million middle-class families up to $2,000 in a year. He said he could pay for the plan by cutting what he called wasteful government spending, including ethanol and sugar subsidies and weapons systems....

Democrats argue not enough cuts could be made in the federal budget to pay for McCain's tax cuts, which Obama said would total $300 billion....

McCain was equally dismissive of Obama's economic plan, which he said would hurt the 100 million Americans who own stock....

http://www.nytimes.com/reuters/news/news-usa-politics.html