Obama and McCain fight over tax plans

Presidential hopefuls Barack Obama and John McCain have been slugging it out
over their respective tax plans.

McCain has accused his Democratic rival of planning huge tax hikes for small
and large businesses, reports
WebCPA.

‘There will be change in Washington. The only question is what kind of
change. Will we enact the single largest tax increase since the Second World
War, as my opponent proposes?’ asked McCain, at a small business leaders group
held earlier this week sponsored by the National Federation of Independent
Businesses and eBay.

Obama has accused McCain of following on with George Bush’s policies of
letting large businesses of the hook.

‘McCain wants to add $300 bn (£154bn) more in tax breaks and loopholes for
big corporations and the wealthy, and he hasn’t even explained how to pay for
it,’ he said.

Obama said his plan would raise capital gains taxes to 20% from the current
15% level, not the 28% that Republicans have predicted. ‘My discussions with
Warren Buffett indicate that it will probably not have any significant impact in
terms of investment,’ he said.

Obama wants to exempt small businesses and start-ups from capital gains
taxes. He has called for letting the Bush tax cuts expire, raising taxes on
those making over $250,000 (£128,000).

McCain has called for elimination of the alternative minimum tax and an
extension of the Bush tax cuts. He told small business leaders that Obama’s tax
plan would harm them. ‘Under Senator Obama’s tax plan, Americans of every
background would see their taxes rise – seniors, parents, small business owners,
and just about everyone else who has even a modest investment in the market,’ he
said.