Tuesday, September 30, 2008
Longest title ever. Sorry.
At any rate, from the WaPo, the Tax Policy Center (a conglomeration of Urban Institute and the Brookings Institution) did a study of the McCain and Obama tax plans. Interesting results.
Democrat Barack Obama and Republican John McCain are both proposing tax plans that would result in cuts for most American families. Obama's plan gives the biggest cuts to those who make the least, while McCain would give the largest cuts to the very wealthy.[emphasis added]Not my words, not a partisan political campaign's ad, but the Tax Policy Center.
In the "Above $2.87 Million" income level (still below the "rich" level proposed by McCain)(/end snark), McCain proposes his largest cut of 4.4%, which equates to an extra $126,280 (on exactly $2.87 M...the graphic uses the avergage amount, which is nearly $270,000!). The Aston Martin Vantage costs $117,000. By the way.
This same income level is, true to his campaign speeches, a tax increase in Obama's proposal. That increases the taxes anywhere from about $300,000 to a little over $700,000.
Obama's biggest cuts are to the bottom 3 income levels listed: Up to $18,981; $18,982 - $37,595; and $37,596 - $66,354. As the graphic points out, 60% of all taxpayer are in those 3 income groups. Most of taxpaying Americans are in those 3 income groups. McCain's plan saves people near the poverty level a whopping $20, while giving the top 0.1% (not 1%...but POINT 1%) 2 or 3 extra Aston Martins. Obama's plan gives these same near-poverty earners over $500 while placing a $700,000 burden on the top 0.1%.
What I don't like about the graphic is that it lists "avergae cut." Reading that, the graphic is skewed towards McCain's cut, who gives everyone a cut, whereas Obama's average is thrown by his massive increase to be extremely-wealthy.
I really suck at math, but if you look at just the taxes that concern the bulk of taxpayers (the 60%), Obama's plan cuts an average of 3.8% and McCain cuts an average of 0.46%. Interestingly, in Obama's plan, if you add up the amount of tax cuts given to the bottom 3 income levels, it equals the tax increase on the highest income level: 11.5%. Go figure. A tax cut that pays for itself through an increase elsewhere.
Finally, a newly created web site called obamataxcut.com uses the Tax Policy Center's figures to see what kind of cut you get under Obama's plan.
For my income range, Obama gives me $4734.40 in cuts. That's 112 cases of 160 Size 3 Pampers!
However...McCain gives me $5,947.41 back. Maybe I should vote McCain after all...