Assuming that the home you sell was your primary residence for two of the last five years, current tax law allows profit of $500,000 (for a couple, $250,000 for a single person) to be exempt from any capital gain tax.

I have not heard that either of the dems have proposed repealing this, although I would not be suprised if I saw evidence.

With the economy sluggish, to put it mildly, the last thing we need is higher taxes. We should be talking about additional tax cuts, but when 50% of the people don't pay any income tax, it's hard to get that half of the population interested.

Kill the rich! (Of course, that would include most of the national politicians.)
Bob Beales | 03.27.08 - 5:38 pm | #

Interesting stuff. What did you use as your sources?
Ryan | Homepage | 03.27.08 - 5:40 pm | #

There are several points where Real Debate is incorrect.

First, Obama or Clinton do not intend to rise taxes for anyone except for top earners. Which is above 250,000.

Second, when taxes pre- and after- Bush cuts are compared, taxes are INCORRECTLY CALCULATED based on TAX BRACKET PERCENTAGES rather than on the EFFECTIVE TAX RATES.


EXAMPLE: 30,000 Single.

This income falls under 28% bracket according to 2000 federal tax rule and under 15% bracket according to 2007 rule.
The posts alleges that 2000 tax is 0.28*30,000=8,400 and 2007 tax is 0.15*30,000=4,500. This yields a substantial net difference $3,900

The truth is that tax is NOT calculated by multiplying taxable income by TAX BRACKET PERCENTAGE.

According to 2000 and 2007 rules, taxes for 30,000 single are determined as follows:

2000
$3,780.00 plus 28.00% of taxable income over $27,850.00 http://www.va.gov/publ/direc/ fin...00ga2_02Bul.htm

2007
$747.00 plus 15.0% of taxable income over $10,120.00
http://www.va.gov/publ/direc/ fin...07ga2_09bul.htm


Based on those rules

2000 tax is $4,988
2007 tax is $4,109
The net difference before and after cuts is $879, not $3,900 as claimed by the earlier post

See tax calculator at http://www.moneychimp.com/ featur...ax_brackets.htm

With this calculator, you can calculate tax due for a selected year and taxable income.
Numbers Numbers | 04.25.08 - 2:33 pm | #

http://www.snopes.com/politics/o...obama/ taxes.asp
LP | Homepage | 10.28.08 - 8:31 pm | #