Sacramento Topics

<b>TAXES</b><br ><br /> <b>OBAMA:</b> Wants to raise taxes on the wealthy and ensure they pay 30 percent of their income at minimum. Supports extending Bush-era tax cuts for everyone making under $200,000, or $250,000 for couples. But in 2010, agreed to a two-year extension of the lower rates for all. Wants to let the top two tax rates go back up 3 to 4 percentage points to 39.6 percent and 36 percent, and raise rates on capital gains and dividends for the wealthy. Health care law provides for tax on highest-value health insurance plans. Together with Congress, built a first-term record of significant tax cuts, some temporary.<br><br> <b>ROMNEY:</b> Keep Bush-era tax cuts for all incomes and drop all tax rates further, by 20 percent, bringing the top rate, for example, down to 28 percent from 35 percent and the lowest rate to 8 percent instead of 10 percent. Curtail deductions, credits and exemptions for the wealthiest. End Alternative Minimum Tax for individuals, eliminate capital gains tax for families making below $200,000 and cut corporate tax to 25 percent from 35 percent. Does not specify which tax breaks or programs he would curtail to help cover costs.

<h3 style="color:#fff">BUDGET/TAXES: Tax breaks</h3> <b>SB 508</b> (Sen. Lois Wolk, D-Davis)<br /><br /> <b>What it would do:</b> Require all corporate and individual tax breaks enacted after Jan. 1 to automatically end in 10 years. Each proposed tax break would have to include specific goals and performance criteria.<br /><br /> <b>Analysis:</b> The automatic sunset would change a political dynamic that nags Democrats, at least for future tax breaks: they can pass on a majority vote, but require a two-thirds vote to repeal. Republicans and their business allies opposed the bill, arguing that the sunset provision should apply to spending proposals, too.<br /><br />

Sen. Lois Wolk introduced legislation to eliminate corporate and individual tax breaks 10 years after they are enacted.