Tax Day Tax Matrix

Every April 15th, working Americans struggle to pay their taxes to the IRS.

This November, taxpayers who vote will choose between two different visions of future April 15th’s. A vote for Senator McCain is a vote to keep tax rates low and prevent Democrat tax hikes. A vote for either Hillary Clinton or Barack Obama means a tax hike of over $2000 for the average family.

Which April 15th would you rather have?

	Current Law	McCain	Hill-Bama
Top Tax Rate	35%	35%	39.6%
Lowest Tax Rate	10%	10%	15%
Capital Gains Rate	15%	15%	20%
Dividends Rate	15%	15%	39.6%
Death Tax	0% by 2010 (Repealed)	15%/$10 million	55%/$1 million
Marriage Penalty	None Under $150,000	None Under $150,000	Full from Dollar One
Child Tax Credit	$1000	$1000	$500
AMT Rate	28%	0% (Repealed)	28%
Self-Employment Rate	37.9%	37.9%	54.9%
Corporate Income Tax	35%	25%	35%
Business Infrastructure	Long and Complex Depreciation	Full Expensing	Long and Complex Depreciation

The first $5 million ($10 million for a surviving spouse) of an estate would be death tax-exempt

The “marriage penalty” refers to a married couple paying a higher amount of combined income tax than if they each filed taxes as single

The “alternative minimum tax” (AMT) requires taxpayers to calculate their taxes two ways, and pay whichever method results in a higher tax owed

Self-employed taxpayers pay both ordinary income tax and self-employment tax (Social Security and Medicare)

The U.S. corporate income tax is currently the second-highest in the developed world. The average European corporate income tax rate is about 25%

It takes larger businesses several years to deduct machinery and equipment, even though they purchase the business asset in year one (e.g. a computer must be slowly-deducted over six calendar years)