Excellent summary:


Top Tax Rate

Current: 35%
McCain: 35%
Obama: 39.6%

McCain would keep the top tax rate on earned income at the current 35%. Obama would raise it to 39.6%.

Lowest Tax Rate
Current: 10%
McCain: 10%
Obama: 15%

Currently — and under a McCain Administration — the lowest tax rate on earned income would remain at 10%. Under Obama, the lowest rate would increase by half — 50%. Clearly, people at this tax level are not the much-maligned “rich people.”

Capital Gains Rate
Current: 15%
McCain: 15%
Obama: 20%

For taxes on capital gains from the sale of a house or your other assets, McCain would keep the rate the same. Obama would raise it from 15% to 20%.

Dividends Rate
Current: 15%
McCain: 15%
Obama: 39.6%

On dividends from stocks or mutual funds you own, McCain would keep the tax rate the same. Obama would more than double it.

Death Tax
Current: 0% by 2010 (Repealed)
McCain: 15%/$10 million
Obama: 55%/$1 million

Under McCain, the first $5 million ($10 million for a surviving spouse) of Inheritance (Death) tax on an estate would be death tax-exempt McCain would tax at a rate of 15% on estates worth over $10 million. Obama would tax at a whopping 55% on estates over just ONE million dollars.

Marriage Penalty

Current: None Under $150,000
McCain: None Under $150,000
Obama: Full Penalty from Dollar One

The “marriage penalty” refers to a married couple paying a higher amount of combined income tax than if they each filed taxes as single. McCain wants no marriage penalty for couple making less than $150,000. Obama wants the penalty to start with the first dollar they earn.

Child Tax Credit
Current: $1000
McCain: $1000
Obama: $500

Basically, Obama would cut the current child tax credit in half. McCain would let it remain the same.

AMT Rate [Alternative Minimum Tax]
Current: 28%
McCain: 0% (Repealed)
Obama: 28%

The “alternative minimum tax” (AMT) requires taxpayers to calculate their taxes two ways, and pay whichever method results in a higher tax owed. McCain would do away with the ATM