WASHINGTON (CNN) - When it comes to tax policy, John McCain and Barack Obama have very different views.
Take the matter of corporate tax rates. McCain wants to reduce that rate. He says that would make American companies more competitive around the world since the U.S. has one of the highest corporate rates. He notes that Ireland used to be an economic basket case until it reduced its corporate rates. As a result, investors from around the world began to flock to Ireland for business deals. That created lots of jobs in Ireland, which now has a strong economy.
Obama wants a windfall profits tax on Exxon-Mobil and the other big oil companies. They have been making record profits as the price of oil has skyrocketed. According to recent polls, most Americans blame big oil for their pain at the pump. McCain opposes such a windfall profits tax. But he goes one step further. Under McCain’s proposed corporate tax rate cut, Exxon-Mobil and other big oil companies would have even larger profits. That’s because McCain has no exemption for the big oil companies.
This is but one tax issue on the table right now. The two presidential candidates disagree on several others. Obama has proposed a $1,000 tax cut for middle class workers.
But the big issue for both will be whether to roll back the Bush tax cuts of 2001 and 2003. McCain originally voted against them but now supports them. Obama wants the Bush tax cuts for those making more than $250,000 a year eliminated. He wants to go back to the tax rates that existed during the Clinton administration. This will be a huge fight in the campaign.