I'm in Debt - Who Should I Vote For?
I'm In Debt
- Posted:
11/1/2008
Just 3 more days until Election Day, and as an American in debt, I'm most interested in how each of our presidential candidates are going to handle money situations. Here's a look at some of the candidates' positions on issues that most likely affect your ability to repay the debt you're currently carrying, and your family finances for the near future:
Immediate... Short Term Relief Efforts Considering the financial crisis we're facing on a country-wide level, both candidates have proposed plans that are designed to jump start the economy as we head into 2009.
Senator Obama: Proposes $500 per individual/$1000 per family Emergency Energy Rebate. He also proposes penalty-free 401K withdrawals of 15%; and up to $10,000 out of IRAs. Minimum distribution requirements for retirement accounts will be temporarily suspended.
Senator McCain: Proposes an increase in the amount of stock loss that is deductible against ordinary income from the current $3,000 to $15,000. He also proposes cutting capital-gains rate on stock held more than one year to 7.5%; and would tax withdrawals made by seniors from IRAs and 401Ks at no more than 10%.
Expanding Affordable Health Care With health care costs constantly on the rise, both candidates have plans to expand access to health care that is more affordable to families.
Senator Obama: Proposes income-related subsidies for health insurance through a newly created national exchange, expanded access to Medicate and State Children's Health Insurance Program with mandatory care for children. If employers do not contribute to the health coverage of their employees, they will be required to contribute a percentage of payroll toward the national plan (although small businesses will be exempt and eligible for tax credits on 50% of premiums). Projected decrease in the number of uninsured individuals would be approximately 20 million people.
Senator McCain: Proposes replacing the current income-tax exemption for health insurance premiums paid by employers with a refundable tax credit of $2,500 for individuals/$5000 for families. Unused credit would be placed into a Health Savings Account. If people are denied health coverage, his Guaranteed Access Plan would allow them to obtain insurance through a high-risk, state-run pool. Health insurance premiums would increase for families by about $389, but should be off set by increase in tax subsidies. This plan would also result in a reduction of uninsured people up to approximately 20 million people.
Income Taxes - Who is Gonna Pay The Bills? Both our candidates are proposing plans that result in lower taxes overall, but the debate is over who will be paying the bills.
Senator Obama: Wants to cut taxes for middle-class families and increase taxes for individuals who make more than $200,000 a year and families who make more than $250,000. The top two marginal rates would extend to 36% and 39.6%. He would like to give seniors a break; if they earn less than $50,000 a year to stop taxing them all together. The top 1% of earners would see an average tax increase of $19,000.
Senator McCain: Proposes to raise the personal exemption for dependents from $3,500 to $7,000 gradually over a few years, and keep the top tax rate at 35%. The top 1% of earners would likely see a tax cut of more than $125,000.
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