The Reality of the Tax Plans

[sleigh]

From the Washington Post, via the Tax Policy Center (joint project of the Urban Institute and the Brookings Institution), a new analysis of the McCain and Obama tax plans in chart form.

(There's also an interesting variation on this chart, scaled to the proportion of people making the various income levels. It's graphically very revealing...)

Obama's plan cuts taxes for anyone making below $226,982. Those making below $18,981 will get the biggest tax break (-5.5%). There's no difference for those making $226,982 to $603,402. Everyone above $604,403 will see a substantial tax hike (8.7% or greater). Yes, as the McCain ads trumpet, Obama will raise your taxes, if you make more than $604,402 dollars. Somehow, the ads always leave out that last bit.

Under the McCain plan, everyone gets a tax cut, but the percentage cut rises with income. Those making less than $18.981 (to whom Obama's plan gives the largest break) get the smallest break under the McCain plan, a whopping -0.2% (yes, that's not 2% but point 2%). Those making $2.87 million and above get the largest tax break (-4.4%).

McCain's plan favors the rich, and doesn't do diddly for anyone making under six figures. This is the change we want?

Comments

Si!

[lsanderson.livejournal.com]

Them Dems, always raising taxes!

[rmeidaking.livejournal.com]

The scary "minor detail" in McCain's proposal is that he wants to include the amount an employer pays for health insurance for an employee as part of gross income, and offset that with a tax credit. This would increase our gross income by about $20K, putting us into a higher tax bracket, so we would be required to pay about 1/4 to 1/3 of that out-of-pocket in new taxes; somewhere between $5K and $6700. McCain would offset that with a $2500 tax credit, so we would be paying between $2500 and $3200 out of pocket. Given that the bottom line on last year's 1040 was $10,900, I call this a 25% tax increase. And we don't make $200K, either.

I'm sure there's other stuff in there, but this is enough for me to be voting for Obama's tax plan.

[scbutler.livejournal.com]

What I don't understand is why the Dems don't run ads that point this out again and again and again.

[scbutler.livejournal.com]

I'd think pointing thos out would help in the swing states. Again and again and again.