How Will The Elections Affect Your Taxes?

The coming elections will bring a new administration, and with it, a change in focus on how best to stimulate the economy, control the deficit, and pay for desired programs.  All of these items will have a direct impact on tax legislation affecting corporations and individuals.  While we cannot predict the outcome of the elections or what changes in tax laws may come about, we can offer some insight about the current thinking on future tax policy.

The nonpartisan Urban-Brookings Tax Policy Center has reviewed the tax proposals of the two major presidential candidates.  According to the study, the rich would pay more under Barack Obama's tax plan, while the poor and middle class would pay less.  John McCain's plan would significantly reduce taxes for the rich, slightly reduce taxes for the poor and middle class, and increase the deficit substantially, according to the study.¹