Experiential Component – Taxes in the News
On Tuesday, November 6, 2012 one of the most crucial presidential elections will take place in our history. The candidates for this upcoming election are as follows: democrat party, current President Barack Obama (president) and Joe Biden (vice); republican party, Mitt Romney (president) and Paul Ryan (vice president); independent/ 3rd party candidates are Virgil Goode, Gary Johnson, and Jill Stein. As the final hours of the most anticipated election approaches, it is important that one is knowledgeable regarding both parties and their intentions for America, if elected for president.
Each presidential candidate and their values regarding ...view middle of the document...
("Tax policy outlook for the presidential election")
Under President Barack Obama’s legislation, several tax cuts have been passed; and as a result, the increase in tax cuts and breaks outweighs the overall tax increases in his presidential term. The ultimate goal of President Obama’s campaign is to not substantially raise taxes for those middle-class, working persons, but to enable the household to retain more of their after-tax income and increase spending. Tax related issues that pertain to the election are: estate and gift taxes, alternative minimum tax (AMT), tax extenders, and new tax incentives. (Becker)
At the end of the year, the 2001 and 2003 tax cuts are scheduled to expire; as a result, tax brackets will increase from 35% to 39.6%. Iodized deductions and personal exemptions will also end with the expiration of these tax cuts. If elected
for another presidential term, Barack Obama intends on extending the tax cuts for an additional two years for all families regardless of the income level. Extending tax cuts will stimulate the economy and lead to economic growth. (Becker)
In relation to estate and gift taxes, as of 2010, the provided exemption is $5 million and a rate of 35%. However, after the current term, it is anticipated that the
figures will decrease to $1 million and 55%. President Obama has proposed to provide a top estate and gift tax rate of 45% and an exemption of $3.5 million. However, when further questioned about the gift and estate tax, Obama states that he will permanently set the tax exemption at $5 million and the rate at 35%. If reelected for president, Obama plans on extending the existing gift and estate tax rates for another four years. (Cloutier)
At the end of 2011, the alternate minimum tax (ATM), an income tax imposed on individuals, estates, corporations, and trusts by the Federal Government, relief expired. Obama plans to raise the exemption levels and has proposed to replace the AMT with the Buffet Rule. Individuals with an income of at least $1 million will be taxed at a 30% rate. The purpose of the Buffet Rule is to tax those individuals who fall under a higher income bracket accordingly, anyone making less than the $1 million per year will be taxed less. Under the existing law, everyone is taxed the same regardless of income levels. (Becker)
During the campaign, Obama has also agreed to temporarily extend the “extender” provision tax. The extender provisions are credits and tax breaks given to corporations that...