Saturday, October 04, 2008

Comparison of the Tax Policies

June 11, 2008:


Here's how the average tax bill could change in 2009 if either John McCain's or Barack Obama's tax proposals were fully in place.

Income Avg. tax bill Avg. tax bill

Note: McCain is the first number, Obama's the second.

Over $2.9M ($269,364) $701,885

$603K and up ($45,361) $115,974

$227K-$603K ($7,871) $12

$161K-$227K ($4,380) ($2,789)

$112K-$161K ($2,614) ($2,204)

$66K-$112K ($1,009) ($1,290)

$38K-$66K ($319) ($1,042)

$19K-$38K ($113) ($892)

Under $19K ($19) ($567)

Source:The Tax Policy Center

As you can see, Obama's claim that anyone making over $250, 000 will pay a higher tax, however, the real taxes don't really come into play until someone makes over $603,000. Unlike our tax code, Obama oversimplifies his contention on the tax increase.

Now, as both candidates have indicated that they want to reduce the deficit, well after doing some research and looking at these numbers, neither of them will be reducing the deficits based on this plan for income redistribution.
The deficit will rise under both plans, Obama's will increase the deficit by $3.3 Trillion, whereas McCain's plan will be $1.2 Trillion above that.

I consistently felt that Obama can't reduce the deficit and still allow for these tax benefits along with the other social programs he proposes for his administration. He will need to pretty much shred the budget to make that happen. Included in that number, is that premise that we are no longer in Iraq and Afghanistan

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