The disdain for the Bush tax cuts on the part of both Democratic candidates is nearing campaign legend status. For a comparison, think Grover Cleveland's battles with protectionists during the 1892 campaign, or Howard Taft fighting William Jennings Bryan over reform in 1908. Not working for you? Try this one, think, Al Gore and the RNC battling over the creation of the internet in 2000 - it's big.
But beyond this inherant hatred for the Bush tax cuts, what else is in the democratic canidates economic plans?
Clinton's plan would start by regressing the rate of income tax paid by upper-income people to the levels seen in the 1990s.
She will also provide matching tax credits to families who save money. The plan includes a dollar-for-dollar match for the first $1,000 a married couple saves, and a 50 percent match on families the first $1,000 savings for married couples earning $60,000 - $100,000. In order to qualify for matching funds, a family has to do their saving in a new American Retirement Account, a Hillary proposed new approach to retirement savings (discussed later).
Obama's biggest tax credit is the, Making Work Pay credit, it would provide a tax credit up to $500 for single payers and up to $1000 for working families. Obama says this will do two things, it will negate payroll taxes on the first $8,100 of income, and second, while maintaining a funding source for social security.
Up next on our magical mystery tour of tax credits, college affordability.
Under Obama's perfectly cheesily titled Create the American Opportunity tax credit, the first $4,000 of college education for 'most Americans' would be free, the use of most, instead of all, is never explained. After the initial $4,000, Obama says his plan would pay for two-thirds the cost of tuition at an 'average public college or university.'
Clinton's credit would double the HOPE tax credit, it would raise the benefit a person can receive from $1,650-$3,000. She would also increase the maximum Pell Grant, tying its value to the cost of tuition.
On retirement, Obama and Hillary offer similar plans. Both would create an automatic workplace pension, this would provide a retirement plan for people who have no employer-based plan. A major aspect of Clinton's plan would establish the American Retirement Account. Money put into this account would be subject to Clinton's matching policy. Additionally, money saved is put into your account via direct-deposit, the same way direct-deposit for payroll works.
Obama would also create an IRA direct-deposit system. His plan will also automatically enroll employees into a workplace pension plan, unless they opt-out. Employers who do not offer a retirement plan will have to enroll their employees in a direct-deposit IRA account. Like Clinton, Obama will match funds saved in his new these new retirement accounts. He will expand the Savers Choice tax credit to match up to $1,000 of savings for a family earning under $75,000.
Clinton says she will pay for the American Retirement Account's matching tax cuts by freezing the estate tax at $7 million per couple. Obama does not say where the money for his plan will come from.
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