2008 Democratic primary debate in Philadelphia, April 16, 2008: on Tax Reform

Barack Obama: No tax increase if earning under $250K; tax cuts under $75K

CLINTON: I will let the taxes on people making more than $250,000 a year go back to the rates that they were paying in the 1990s.

Q: Senator Obama, would you take the same pledge? No tax increases on people under $250,000?

OBAMA: I not only have pledged not to raise their taxes, I’ve been the first candidate in this race to specifically say I would cut their taxes. We are going to offset the payroll tax, the most regressive of our taxes, so that families who are middle-income individuals making $75,000 a year or less, that they would get a tax break so that families would see up to $1,000 worth of relief.

Q: You both have now just taken this pledge on people under $250,000 and $200,000.

OBAMA: Well, it depends on how you calculate it. But it would be between $200,000 and $250,000.

Barack Obama: Raise capital gains tax for fairness, not for revenue

A: What I’ve said is that I would look at raising the capital gains tax for purposes of fairness. The top 50 hedge fund managers made $29 billion last year--$29 billion for 50 individuals. Those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That’s not fair.

Q: But history shows that when you drop the capital gains tax, the revenues go up.

A: Well, that might happen or it might not. It depends on what’s happening on Wall Street and how business is going.

Hillary Clinton: Absolutely no tax increase on people earning under $250K

CLINTON: I will let the taxes on people making more than $250,000 a year go back to the rates that they were paying in the 1990s.

Q: Even if the economy is weak?

CLINTON: Yes. And here’s why: #1, I do not believe that it will detrimentally affect the economy by doing that. We used that tool during the 1990s to very good effect and I think we can do so again I am absolutely committed to not raising a single tax on middle class Americans, people making less than $250,000 a year. In fact, I have a very specific plan of $100 billion in tax cuts.

Q: An absolute commitment, no middle-class tax increases of any kind.

CLINTON: No, that’s right. That is my commitment.

Q: Senator Obama, would you take the same pledge? No tax increases on people under $250,000?

OBAMA: Well, it depends on how you calculate it. But it would be between $200,000 and $250,000.

Hillary Clinton: Perhaps raise capital gains tax, but at most to 20%

OBAMA: What I’ve said is that I would look at raising the capital gains tax for purposes of fairness.

Q: Sen. Clinton, would you say, “No, I’m not going to raise capital gains taxes”?

CLINTON: I wouldn’t raise it above the 20% if I raised it at all. I would not raise it above what it was during the Clinton administration.

Q: “If I raised it at all”. Would you propose an increase in the capital gains tax?

CLINTON: You know, I’m going to have to look and see what the revenue situation is. We now have the largest budget deficit we’ve ever had, $311 billion. We went from a $5.6 trillion projected surplus to what we have today, which is a $9 trillion debt.