Most of my life, politics hasn’t been a priority for me but as the economy craps the bed and America looks to be losing it’s competitive edge, I’m looking for change. America needs change and taxes will be an important part of my presidential vote. The October ’08 issue of Inc. Magazine had a great article breaking down each candidates tax proposals, Tax This; Tax That. Below are the key proposals for both candidates that Inc. Magazine has highlighted:

McCain
Key Proposals:

• Extend the Bush tax cuts
• Dramatically scale back the estate tax
• Make permanent the Economic Stimulus Act’s more generous limits for expensing
• Lower the corporate tax rate

Obama
Key Proposals:

• Cut taxes for all but the richest 1 percent
• Eliminate capital gains taxes for start-ups
• Cut taxes for firms that add jobs in the U.S.
• Close corporate loopholes and eliminate tax shelters

Both candidates are definitely looking to cut taxes, especially under the current conditions as the US faces a recession along with a worldwide economic slowdown.

Analyzing the proposals of both candidates, I feel that Obama’s plan would fare better for the middle class and America. Obama’s proposals includes a variety of tax credits like a $4,000 refundable credit against college tuition, extending the Earned Income Tax Credit to more low-income Americans and expanding the Child and Dependent Care Tax Credit. One proposal that really stood out to me was getting rid of income tax for seniors making less than $50,000 along with the other credits really looks like it will help the people that need it the most. With McCain’s proposal many American’s will also enjoy a cut in taxes but nothing really stood out to me.

Now down to business. How are these candidates going affect me and Pure Adapt, Inc. Here is a what Inc. Magazine highlighted for each candidate on business:

McCain
“As for the candidate’s business tax agenda, McCain would lower the top corporate income tax rate from 35 percent to 25 percent; he has also proposed, without offering specifics, measures that would expand the corporate income tax base. He has pledged to end preferential treatment for oil and gas companies and would establish a permanent research and development tax credit of 10 percent of wages spent on R&D. And for five years, businesses would be able to expense certain equipment purchases immediately. He also would make permanent the more generous limits for Section 179 expensing that were included in the recent stimulus package — a move that could be especially helpful for small businesses. On the other hand, he would repeal the Section 199 deduction for “domestic production activities,” a deduction meant to encourage businesses to keep jobs on U.S. soil. The deduction will reach 9 percent in 2010.”

Obama
“For businesses, Obama is proposing incentives to invest in small businesses and tax credits for small businesses that purchase health insurance for their employees. He would eliminate capital gains taxes for investors in start-ups and small businesses (terms that remain undefined by the campaign) and permanently resurrect the R&D credit for all companies.”

Both set of proposals will help businesses in America but I like the cut of Obama’s jib a little more. I feel that Obama is focusing on small businesses slightly more than McCain. I am part of a small business of many in America which makes their tax proposals on business so important to me. I feel strongly that small business is a major make up of America and promoting small businesses will help America flourish again and push innovation to keep America strong.

Whether it’s Obama or McCain their proposals will surely help Americans financially. Either way both candidates need to cut government spending and live up their proposals. I am personally favoring the Obama and Biden ticket with their tax proposals that look to focus more on the middle and lower class and small business.

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