Presidential candidates: Taxes

From tax calculators to interactive comparisons, the internet is littered with various means of informing the public about the politicians’ different views.  Perhaps the most common slogan across sites such as Bankrate, Yahoo Finance, and Smart Market is the question: “Is it fair?” It is important to understand not only the different forms of taxes, but the way in which you, as a voter, will be affected by upcoming changes.  Following is information on the different forms of taxes, with blurbs about the plans of both Obama and Romney. Individual Income Tax Rates *Obama: Increase the taxes of those with higher incomes.  Individuals with a yearly income of $200,000 or families with an income of $250,000 will be taxed 39.6%. *Romney: Decrease taxes for all income brackets. Interest, Dividends, Capital Gains *Obama: Increase capital gains tax for high-earners. *Romney: Eliminate investment income taxes for those who earn less than $200,000, keep taxes on interests, dividends, and capital gains the same for all other earners. Estate Tax *Obama: Exempt estates with a worth of $3.5 million or less, raise estate tax to 45%. *Romney: Permanently repeal estate tax. Corporate Tax Rate *Obama: Decrease to 28%. *Romney: Decrease to 25%. International Taxes *Obama: Minimum tax on international profits. *Romney: Tax profits of multinational businesses in U.S., remove taxation of international profits. Research and Development (R&D) *Obama: Reinstate the R&D credit from last year. *Romney: Increase money to R&D, make a permanent R&D credit. Energy *Obama: Make renewable energy tax credit refundable, remove tax partialities towards fossil fuels. *Romney: Reorganize energy production, with a greater focus on traditional energy methods than modern and expensive energy technologies.