US 2008 Presidential Candidates On Tax Issues

TAXES:

Clinton: Raise income taxes on wealthiest and keep estate tax on them. Higher tax breaks for college.

Edwards: Raise income taxes on wealthiest and their capital gains tax. $25 billion a year in tax cuts for non-wealthy, including tripling the Earned Income Tax Credit for singles and $500 tax credit for families making up to $75,000.


Obama: Raise income taxes on wealthiest and their capital gains and dividends taxes. Raise corporate taxes. $80 billion in tax breaks mainly for poor workers and elderly, including tripling Earned Income Tax Credit for minimum-wage workers and higher credit for larger families.


Giuliani: Cut corporate tax rate to 25 percent from 35 percent, eliminate estate tax, establish a permanent child tax credit.


Huckabee: Replace income and investment taxes with 23 percent national sales tax, with help for poor and rebates for essential purchases.


McCain: Opposed some of Bush's tax cuts because they were not tied to spending cuts, now says the tax cuts should be permanent.


Romney: Tax breaks to those earning less than $200,000, eliminating capital gains, interest and dividend taxes for most.




HEALTH INSURANCE:


Clinton: $110 billion a year for mandatory universal coverage in first term. Tax credits to make insurance more affordable. Raise taxes on wealthy.

Edwards: Up to $120 billion a year for mandatory universal coverage in first term. Tax credits for affordability. Raise taxes on wealthy.

Obama: No universal coverage mandate for adults but one for children. More than $65 billion a year to make universal coverage affordable. Raise taxes on wealthy.

Giuliani: Income tax deduction of $7,500 per taxpayer to defray insurance costs.

Huckabee: Spend more on prevention, let market and states expand insurance.

McCain: $2,500 tax credit per taxpayer to help pay for insurance.

Romney: Incentives for states to expand affordable coverage. As governor, signed law aimed at ensuring universal coverage.

SOCIAL SECURITY:

Clinton: Noncommittal on raising $97,500 income cap on payroll taxes. Proposes a federal match of up to $1,000 to help set up 401(k) plans.

Edwards: Subject the portion of income over about $200,000 to Social Security taxes.

Obama: Raising cap with unspecified "small adjustment" that would subject a portion of higher incomes to Social Security taxes.

Giuliani: Rules out tax increase to save Social Security.

McCain: Would consider "almost anything" in a compromise to save Social Security, yet rules out higher payroll taxes for now.

Huckabee: Higher benefits for people who delay retirement past 70. Let retirees choose to get benefits or a payment at death for heirs.

Romney: Higher taxes are "wrong way to go."


Who is your favorite candidate? Do you agree with where they stand on the tax issues? Who will lead the lost country in the time of uncertainties?

Tax Tips from CRA

Take it to the limit!

Did you know…

That February 29, 2008, is the deadline for making a contribution to a registered retirement savings plan (RRSP) for the 2007 tax year? With RRSPs, you can start saving now for your retirement, education, or the purchase of a home.

Beginning in 2007, RRSP must mature before the end of the year in which the annuitant turns 71 years of age (previously 69 years of age). Similarly, registered pension plans and deferred profit sharing plans will generally be required to commence the payment of benefits to members by the end of the year in which the members turn 71 years of age.

Begin the New Year with a clean slate and a clear conscience!

Ottawa, Ontario, January 3, 2008… Did you fail to file an accurate tax return or not file at all, but should have? The Canada Revenue Agency's (CRA) Voluntary Disclosures Program may be able to help. The program allows people to come forward and correct their tax information and avoid being penalized, criminally investigated and prosecuted.

Last year the CRA processed 8,244 disclosures for taxpayers who used the Voluntary Disclosures Program and got a second chance to comply with their tax obligations. Coming clean saved these taxpayers from an audit or a criminal investigation, which can result in penalties, fines, and even jail time. Their valid disclosures involved more than $525 million in taxes.

By encouraging taxpayers to come forward and correct the information they filed with the CRA, the Voluntary Disclosures Program helps protect the tax base and makes tax administration fair for all Canadians.

If you make a full disclosure before we start any compliance action or investigation, you may only have to pay the taxes owing, plus interest. If we come to you first, you could end up paying penalties and fines, and even face jail time.

For more information about the Voluntary Disclosures Program or need to file your tax returns, contact your tax accountant for advise.