| Heading into this year's presidential election, one of | | | | would see a raise in their yearly tax bill, while |
| the biggest questions on investors' minds is how | | | | those making under that would see little to no |
| each candidate could potentially influence their | | | | change. Those making less than $250K would see |
| portfolios and affect overall financial health. Both | | | | a decrease in their tax bills up to $2,500 per year. |
| Barrack Obama and John McCain generally adhere | | | | Obama has also said he plans on raising both |
| to the financial policies of their respective parties, | | | | capital gains and qualified dividend taxable rates to |
| which have historically contrasted starkly. | | | | somewhere between 20% and 28%. |
| The most obvious influence on investors will stem | | | | Regarding public companies, in which we investors |
| from the new administration's tax policy. McCain | | | | have a vested interest, Obama's tone is that of |
| has said that he plans to keep much of the | | | | greater corporate responsibility. In regards to the |
| current administration's tax policy by maintaining | | | | financial sector, has said that he would require |
| marginal tax rates and rates at which capital gains | | | | banks to have liquidity requirements to help avoid |
| and dividends are taxed. He plans on raising the | | | | another Bear Stearns like collapse. Additionally he |
| estate tax exemption to $5 million and keep | | | | has stated the he would require more |
| "carried interest" tax rates at 15%. Tax payers | | | | governmental oversight and give the Federal |
| across the board would see decreases in their | | | | Reserve the power to further regulate any |
| yearly tax bill, of which those in the highest | | | | banking institutions to which it lends money. |
| brackets would see the biggest actual and relative | | | | Predictably, John McCain adheres more to the |
| savings. | | | | typical Republican "hands off business" motto. He |
| Obama has very different plans for his | | | | has said that he would cut corporate tax rates |
| administration's tax policy. He plans on raising the | | | | from 40% to between 25% and 35%. He |
| highest marginal tax rates to 36% and 39.6%, | | | | supports free trade agreements with South |
| they are now at 33% and 35%. This would return | | | | Korea and Columbia, unlike Obama. He also is |
| tax payers to rates they paid during the Clinton | | | | against any tariffs on imports from China, and |
| administration. Individuals making over $700K | | | | against material raises of the minimum wage. |