Both candidates favor keeping some or all of the Bush tax cuts in place. Wealthy taxpayers win out under McCain's plan, while lower-income earners benefit more under Obama's proposals.
Obama
• Leave all tax cuts in place for everyone except couples making more than $250,000 and single filers making more than $200,000. Those high-income groups would see their top two income tax rates revert to 36% and 39.6% from 33% and 35% respectively.
• Provide $1,000 tax cut for working couples making less than $250,000.
• Introduce other tax breaks for lower and middle-income households.
McCain
• Make 2001 and 2003 tax cuts permanent for everyone.
• Permanently repeal the Alternative Minimum Tax, the so-called "wealth tax" that threatens the middle class.
