Estimate your taxes under McCain or Obama!

Via an email I received alerting me to this nifty little tool I had to share with everyone. It’s developed by a business software company and an accounting professor in Maine which lets you compare your tax rate under a proposed McCain or Obama tax plan. Keep in mind it’s based on their state proposals and policies which will inevitably be watered down by congress and/or never really pass in general, so it’s just for fun.

You can access the tool here: Election Taxes

Some estimates I did earlier:

$35,000 annual income, married filing jointly, with 2 dependents:
35k-taxes.jpg

$100,000 annual income, married filing jointly, with 2 dependents:
100k-taxes.jpg

$250,000 annual income, married filing jointly, with 2 dependents:
250k-taxes.jpg

As you can see, the differences lie in the tax credits and you can see the changes compared to the existing laws.

$1,000,000 annual income, married filing jointly, with 2 dependents:
1mil-taxes.jpg

Once you hit the million mark, Obama’s plan calls for invariably higher taxes than McCain, in line with Obama’s rhetoric on taxing the rich and such.

Report on it from Boston.com:

PORTLAND, Maine—Voters whose bottom line is taxes can use a new online tool to calculate what their own bottom line would be with the IRS under a Barack Obama or John McCain administration.

The model developed by a business software company and an accounting professor in Maine estimates how individual income taxes would be affected under plans put forth by the two presidential candidates.

The Portland-based company Quantrix says taxpayers who log onto http://www.electiontaxes.com and enter their income can obtain a free estimate of what they would pay in taxes for 2009 through 2012 under each of the two presidential candidates.

“The economy is a key factor in this presidential election, and our interactive tool enables individuals to make an informed choice when casting their vote,” said professor Jeffrey Gramlich of the University of Southern Maine. “With just a few keystrokes, this model enables voters to see how these tax plans will impact their personal bottom line.”

McCain and Obama have both vowed to reduce the overall tax load, although the Democrat wants to raise taxes on families making more than $250,000 a year. McCain’s proposals include extending President Bush’s tax cuts, a move Obama opposes.

As they state, these plans change all the time and are totally hypothetical. After playing around with various incomes you can find the minute differences in credits and refunds.