McCain and Obama Release New Tax Plans on Eve of Final Debate

McCain:

• Suspend mandatory distribution rules for IRA and 401(k)
• Reduce tax rate on withdrawals from IRAs and 401(k)s to 10%
• Reduce capital gain tax rate to 7.5% (from 15%) in 2009 and 2010
• Increase amount of capital losses deductible against ordinary income (from $3,000 to $15,000) in 2008 and 2009
• Increase the personal exemption for each dependent child to $7,000 (from $3,500)
• Reduce corporate income tax rate to 25% (from 35%)
• Eliminate tax on unemployment benefits in 2008 and 2009
• Provide $5,000 toward purchase of health insurance

Obama:

• Suspend mandatory distribution rules for IRA and 401(k)
• $3,000 refundable credit for each additional full-time employee hired in 2009 and 2010
• Increase small business expensing limit to $250,000 in 2008 and 2009
• Eliminate capital gains tax on small and start-up businesses
• $500 (single), $1,000 (married) tax cut
• Eliminate tax on unemployment benefits in 2008 and 2009
• Eliminate tax on hardship withdrawls from IRAs and 401(k)s

Press and blogosphere coverage:

• Americans For Tax Return
• Heritage Foundation
• L.A. Times
• MarketWatch
• National Review
• New York Times
• Newsday
• Tax Vox I
• Tax Vox II
• Wall Street Journal I
• Wall Street Journal II
• Washington Post