Kerry Tax Cuts

[bookman]

Need some help here.

I just had a discussion with a friend (and a moderate Kerry supporter) about Kerry tax cut plans. He argues that Kerry will NOT cut taxes, but just use credits etc and call those tax cuts. While I think anything that results in you paying less income tax is a tax cut I also read that there will be a modest reduction in the lowest bracket. Does anyone know of a real clear, but detailed explanation of the Kerry tax plan?

[murielm99]

1. Kerry says

he will cut taxes for 98 percent of families and 99 percent of taxpaying corporations.

He will end the incentives to corporations that outsource. He will restore the taxes that were cut for the top two percent under *.

He discusses very specifically, and separately, the things that will be tax credits. Some of those things are tax credits for health expenses, and credits for companies that do not outsource.

Tell your friend to go to Kerry's website and do a search for "tax cuts."

[gottaB]

2. see the files at Kerry's website

http://www.johnkerry.com/issues/economy/

Kerry favors keeping the tax cuts for those making less than 200,000 per year. (So does Bush, but Bush will also keep the tax cuts for the rich).

Kerry favors keeping dividend and capital gains tax cuts for those making less than 200,000 per year.

Kerry favors maintaining the estate tax, but raising the exemption to $4 million per couple and $10 million per family farm/business.

Kerry will cut corporate tax rate by 5%. This will be funded by eliminating the tax deferal on foreign income.

Kerry is also proposing a one year tax holliday (10%) for domestic reinvestment.

The new jobs tax credits indeed won't cut a company's taxes if it doesn't plan to hire new US workers. It will only apply to sectors impacted by outsourcing, and businesses that employ less than 100 people. For a whole lot of small businesses, it will indeed be a tax cut.

There are also tax credits associated with Kerry's health care, energy, education and child care policies. A whole lot of Americans would regard those as real tax cuts. See the leaflet on pro-jobs, pro-family tax cuts:

http://www.johnkerry.com/pdf/pr_2004_0812.pdf

[54anickel]

3. While not a direct answer to your question, there's a nice table put

together by Deloitte & Touche contrasting Bush and Kerry tax plans.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x11061