Election 08: How Might Your Tax Bill Change?

In our last report on the Election 08 thread, we touched on how the two likely candidates might affect the real estate industry. Perhaps an even more widespread question among a majority of folks would be, "What will they do to my tax bill?"

John McCain and Barack Obama have starkly different philosophies about tax policy – how to raise the revenue needed to support government programs, spur growth and ensure economic fairness.

According to a report released recently by a nonpartisan policy group in Washington, D.C., the common assumptions most people make about the plans of McCain, the presumptive Republican nominee, and Obama, the Democrats’ pick, are not wildly off-base.

McCain: The average taxpayer in every income group would see a lower tax bill, but high-income taxpayers would benefit more than everyone else.

Obama: High-income taxpayers would pay more in taxes, while everyone else’s tax bill would be reduced. Those who benefit the most – in terms of reducing their taxes as a percentage of after-tax income – are in the lowest income groups.

This one report estimates that over 10 years, McCain’s tax proposals could increase the national debt by as much as $4.5 trillion with interest, while Obama’s could add as much as $3.3 trillion.

What do you think? Which candidate do you think will have the most jarring effect on our overall tax situation? We’d love to hear your comments. Just use the "comment" link below to sound off and tell us what you think. As the election draws nearer, we’ll continue to post more questions here about the two candidates, and welcome your input and feedback.