Bush vs. Kerry On Your Tax Bill -- We report, you decide

Under President Bush we have had two tax bills that lowered income taxes, one in 2001 and the second in 2003.

For married couple filing jointly with adjusted gross incomes of about $225,000 or higher, and for single taxpayers with an income of $185,000 or higher (assuming typical itemized deductions), Kerry proposes to restore the following rates to what they were under President Clinton (that is, before the 2001 and 2003 tax cuts):

• Raising the top marginal income-tax rate of 35% back up to 39.6% and raising the 33% rate to 36%.
• Raising the 15% top rate on dividends to as high as 39.6%.
• Raising the top rate on capital gains from selling securities held more than one year from 15% to as high as 20%.

(We recall that prior to the 2003 tax cut, dividends were taxed at the same rate as ordinary income rather than at the favorable rates that apply to net capital gain. Now, after the 2003 tax cut, dividends are taxed at the favorable rates that apply to net capital gain, that is, 15% and 5%. This explains why the tax rates on dividends, under Kerry's proposal, would be higher than the tax rates on net capital gain.)

(As a tax practitioner for some 30 years, my platform contained some proposals for tax changes from someone who has been there and done that. These are on my website. Not having seen the light of day, maybe they will someday.)