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Breaking down the candidates' tax plans

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    Analysis from personal finance expert Vera Gibbons

  • Duration 3:22
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Minds we've been hearing both.

Side of both candidates out there tax plans.

But sometimes it's hard to cut through all the spent so we're gonna -- all the numbers for you on both plans so that you can decide which plan is really best for you your family and your money.

Our personal finance expert hearing Gibbons is here to break it up that morning in -- and -- I'll try to keep it it ends just keep it -- Florida a lot of Americans don't know both plans and they don't know which way they should vote according to their incomes so let's start with income tax rates right so right now we have six different rates -- of course refers to a simpler tax coding -- like to lower their rates across the -- the low rate would be 8% the top rate would be.

28%.

As you see there on your full screen so if you make 50000 dollars you're looking -- a tax cut.

About 500 dollars on average now Obama like to raise rates for those top income earners to 36%.

And 36 point nine -- -- nearly 40% doesn't affect most councils -- can make between 20500000.

You're looking an additional tax liability of 3300 dollars -- 3300 dollars on average per year.

If you're a millionaire reliving an additional tax liability of a 185000.

Dollars -- accept.

That would be a big jump that's president Obama's plan now what about -- in the highest tax -- for Romney's plan what -- he wanted to for those that well now we're moving into the interest and dividends and capital gains and this is the investment income what Romney would like to do.

Is he would like to eliminate taxes on capital gains interest and dividends for those making less than 200000 dollars.

Keeping it at 15%.

For everybody else now Obama out.

Must raise the capital gains again on those top earning income individuals so those guys making a lot of money once -- on -- And pay dividends up to the ordinary income rates if you make a lot of money.

You're looking at being taxed on -- dividends at 39 point 6% nearly 40% would not investment and that's -- -- -- -- stocks bonds but exactly because of that nature -- corporate tax rate you know we say we wanna keep businesses here in America Romney keeps saying we need more jobs more jobs more jobs.

What are we doing as far as the corporate tax and they both agree -- -- 35% the current tax rate is just too high what Romney wants to do is lower -- -- 25%.

-- which is right in line there with congressional Republicans Obama on the flip side.

Is calling for a top rate at 28%.

And even lower to 25% in the current rate right now has 3535%.

They both agree that that is just too high and obviously as a -- large competitors and that's why these companies -- -- and other country choking.

Right through me tonight.

Alternative Minimum Tax what exactly has.

He kept -- this is did you read it and -- it's a separate tax system a parallel tax system that was initially enacted to.

And ensure that wealthy individually at least paid some taxes and working its way down the income chain affecting a lot of middle income individuals so.

Romney wants to do away with it -- a bomb on the flip side like to -- placed this.

-- like to replace it with a -- world which requires that millionaires those making over a million dollars would be required to pay.

At least 30% in taxes so they have completely different -- takes on this -- and millionaires -- four if you have a million dollars especially like in the city like new York and pinned against -- school.

Then your taxes are gonna go up and that you're going to be paying 30% double whammy right if you make a million dollars in New York that's actually -- nothing all right.

Thanks so much fair -- all downforce it is very confusing but you're helping us we appreciate dying in --

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