FACTBOX: McCain, Obama on taxes and fiscal spending

(Reuters) - As the U.S. economy continues to slide ahead of the November 4 election, presidential rivals John McCain and Barack Obama have proposed a bounty of tax breaks and spending projects to stimulate jobs and investment.

Many are aimed at helping families cope with mortgages and rising food and fuel costs, but they also aim to foster development of renewable energy sources, clean technologies and infrastructure.

Below is an outline of plans from Republican candidate McCain and Democratic candidate Obama. Both would increase the national debt by trillions of dollars over a two-term presidency.

BUSH 2001-2003 TAX CUTS

McCain: Make permanent all provisions of these cuts, which are due to expire at the end of 2010, other than the repeal of the estate tax. Make the estate tax permanent with the first $5 million exempted and a 15 percent rate on inheritance amounts above that level.

Obama: Make permanent select provisions, including expanded child tax credits and the 10-, 15-, 25- and 28-percent tax rate brackets. He would allow the top two rates of 36 and 39.6 percent to return to their levels before the Bush tax cuts. He proposes to make the estate tax permanent with a $3.5 million exemption and a 45 percent rate.

NEW TAX CUTS

McCain: Double the personal tax exemption for dependents to $7,000. Reduce the maximum corporate tax rate in phases to 25 percent from 35 percent and allow businesses a first-year deduction for purchases of equipment. Convert research and development expenses tax credit to a credit for 10 percent of wages incurred for R&D and make this provision permanent. McCain also proposed a summer 2008 suspension of federal taxes on gasoline and diesel fuel.

Obama: Create refundable "Making Work Pay Credit" for low-income workers of 6.2 percent of earnings up to a maximum of $8,100. Expand the Earned Income Tax Credit and Child and Dependent Care Tax Credit. Create refundable "Universal Mortgage Credit" of 10 percent of mortgage interest for home owners who do not itemize tax returns. Eliminate income tax for seniors making less than $50,000 per year. Mandate automatic 401(k) and individual retirement account contributions, expand tax credits for low-income savings and college education funds. Make permanent the R&D and renewable energy production tax credits.

CAPITAL GAINS TAXES, AMT

McCain: Keep current tax rates on dividends and capital gains. Permanently extend the 2007 alternative minimum tax exemption, increase it by 5 percent per year after 2013.

Obama: Increase the maximum capital gains rate to 25 percent. Require reporting of cost basis for calculating gains. Eliminate capital gains taxes on start-up businesses and provide tax breaks for landowners selling to first-time family farmers. Extend and index the 2007 AMT patch.

HEALTH CARE

McCain: Include employer-paid health insurance as taxable income and replace the previous exclusion with a refundable tax credit of $2,500 per year for individuals and $5,000 for families. This aims to encourage people to buy more efficient health insurance plans and control health care costs. Create a high-risk pool to help people with high health costs get insurance.

Obama: Target tax subsidies to low income people to help them buy health insurance, expand Medicaid to cover all adults up to the poverty line and the State Children's Health Insurance Program to cover all children in families with income up to three times the poverty level. Impose a "pay or play" plan that would charge employers a 6 percent payroll tax penalty if they don't provide health insurance for employees.

TAX SIMPLIFICATION: