A. Proposed Extensions of the 2001 and 2003 Tax Acts
Both Senator McCain and Senator Obama would extend most provisions of the 2001 and 2003 tax cuts (EGTRRA and JGTRRA), which are scheduled to expire after 2010. Under current law, the 10 percent income tax bracket will disappear in 2011 and the 25, 28, 33, and 35 percent brackets will increase to 28, 31, 36, and 39.6 percent, respectively. Senator McCain would extend the statutory rate schedule established by EGTRRA and JGTRRA. Senator Obama would extend the 10, 15, 25, and 28 percent tax rates but restore the 36 and 39.6 percent rates imposed on the highest income taxpayers.