reply to post by azodrac
Q: Would Obama tax my profits if I sell my home? Would he tax my IRA? Would he tax my water?
A: No. A new e-mail being circulated about Obama's tax proposals is almost entirely false.
Alert readers may already have noted that this chain e-mail does not provide links to any of Obama's actual proposals or cite any sources for the
claims it makes. That is because they are made up.This widely distributed message is so full of misinformation that we find it impossible to believe
that it is the result of simple ignorance or carelessness on the part of the writer. Almost nothing it says about Obama's tax proposals is true. We
conclude that this deception is deliberate.
Our own sources for the following are Obama's own Web site and other statements, interviews with Obama's policy advisers, and a comprehensive
analysis of both the McCain and Obama tax plans produced by the Urban-Brookings Tax Policy Center, plus additional sources to which we have provided
links.Home Sales: The claim that Obama would impose a 28 percent tax on the profit from "all home sales" is false. Both Obama and McCain would
continue to exempt the first $250,000 of gain from the sale of a primary residence ($500,000 for a married couple filing jointly) which results in
zero tax on all but a very few home sales.
* Capital Gains Rate: It's untrue that Obama is proposing a 28 percent capital gains tax rate. He said in an interview on CNBC that he favors
raising the top rate on capital gains from its present 15 percent to 20 percent or more, but no higher than 28 percent. And as for a 28 percent rate,
he added, "my guess would be it would be significantly lower than that." Furthermore, he has said only couples making $250,000 or more (or, his
policy advisers tell us, singles making more than $200,000) would pay the higher capital gains rate. That means the large majority of persons who pay
capital gains taxes would see no increase at all.
* Tax on Dividends: Another false claim is that Obama proposes to raise the tax rate on dividends to 39.6 percent. Dividends currently are taxed
at a top rate of 15 percent, and Obama would raise that to the same rate as he would tax capital gains, somewhere between 20 percent and 28 percent
but likely "significantly" lower than 28 percent. This higher tax also would fall only on couples making $250,000 or more or singles making more
* Taxing IRAs and 529s: Contrary to the claim in this e-mail, raising tax rates on capital gains or dividends would not result in higher taxes on
any investments held in Individual Retirement Accounts or in popular, tax-deferred "college funds" under section 529 of the Internal Revenue Code.
The whole point of such tax-deferred plans is that dividends and capital gains are allowed to accumulate and compound tax-free, and neither Obama nor
McCain proposes to change that. And as previously mentioned, any capital gains or dividend income from stocks, bonds or mutual funds owned outside of
tax-deferred accounts would continue to be taxed at current rates except for couples making over $250,000, or singles making more than $200,000.
* Doubled Taxes? The claim that "Under Obama your taxes will more than double!" is also false. The comparative rate tables this e-mail provides
for McCain and Obama are entirely wrong, as we explained in an earlier article March 13 about another false e-mail from which these tables are copied.
It is supposedly a comparison of tax rates before and after the Bush tax cuts, but it grossly overstates the effect of the Bush cuts. Furthermore,
Obama proposes to retain the Bush cuts for every single income level shown in this bogus table.
* Estate Tax. The claim that Obama proposes to "restore the inheritance tax" is also false, as are the claims that McCai