Kerry's Take on Taxes

Indeed, Kerry has promised to keep a fair amount of President Bush's tax benefits for individuals in place, most notably, alleviating the marriage penalty, increases in the child tax credit and the establishment of the 10% income tax bracket.

Kerry abstained from the 2001 Senate vote that passed President Bush's first round of tax cuts, the thrust of which were aimed at lower income tax brackets. Kerry voted against the 2003 tax cuts, which instituted the lower rate on long-term capital gains and certain dividends. He voted in favor of the 2002 tax cuts, most of which were aimed at small businesses.

The senator has introduced some new ideas in his campaign, chief among them a $4,000 tax credit for college tuition. The proposed credit also would be refundable, meaning even low-income people who may owe less than $4,000 in taxes would get the remainder of the credit as a refund. Sen. Kerry has not said whether the credit will be available only to taxpayers below a certain income.

There's some reason for Kerry to be fairly circumspect in his tax policy. In essence, the president doesn't make tax policy; Congress does. And anything too far afield from President Bush's plan likely will have a tough time in Congress.

"Once the rhetoric dies down, if Kerry is elected, Congress will have to hash out a tax plan," says Peter Sepp, a spokesperson for the National Taxpayers Union, a policy lobbying group aimed at minimizing taxes. "That's when we'll see what's directed at the truly wealthy, or just establishes artificial cutoffs."

Contrary to most voters' perceptions, though, tax policy is not solely based on what applies to their 1040 forms. And Kerry, in his role as senator, rather than presidential candidate, has introduced several sophisticated and creative tax bills, according to Tom Oschenschlager, vice president of tax for the American Institute of CPAs.