Obama vs. McCain on Taxes

[AwptimusPrime]

John McCain and Barack Obama have starkly different philosophies about tax policy - how to raise the revenue needed to support government programs, spur growth and ensure economic fairness.

According to the Tax Policy Center's findings, the common assumptions most people make about the plans of McCain, the presumptive Republican nominee, and Obama, the Democrats' pick, are not wildly off-base.

McCain: The average taxpayer in every income group would see a lower tax bill, but high-income taxpayers would benefit more than everyone else.

Obama: High-income taxpayers would pay more in taxes, while everyone else's tax bill would be reduced. Those who benefit the most - in terms of reducing their taxes as a percentage of after-tax income - are in the lowest income groups.

Under both plans, all American taxpayers could pay a price for their tax cuts: a bigger deficit. The Tax Policy Center estimates that over 10 years, McCain's tax proposals could increase the national debt by as much as $4.5 trillion with interest, while Obama's could add as much as $3.3 trillion.

The reason: neither plan would raise the amount of revenue expected under current tax policy - which assumes all the 2001 and 2003 tax cuts expire by 2011. And neither plan would raise enough to cover expected government costs during those 10 years.

IN ESSENCE...

If you make less than $112,000 a year, you pay less taxes under Obama's plan, than under McCain's.

If you make more than 600K, or if you're Paris Hilton or Bill Gates, you pay more under Obama's plan.

Source: CNN/Money Magazine

Read More: How McCain and Obama will change your tax bill - Jun. 11, 2008

[cpnichol]

It's nice to see tax proposals so clearly illustrated.

It's one of the things that frustrates me with a lot of politicians is that they just say what people want to here. In the UK we here from the Conservatives "we'll cut taxes" "we'll spend more on our military, more police, prisons, border security, anti-terrorism etc". But when asked how they would pay for all this extra spending and afford tax cuts they just mumble something about cutting back on waste and inefficiency.

I understand it can be difficult to be specific but tax less, spend more (what seemed to be the Bush policy) is not going to work in the long term.

[AwptimusPrime]

Originally Posted by cpnichol

It's nice to see tax proposals so clearly illustrated.

It's one of the things that frustrates me with a lot of politicians is that they just say what people want to here. In the UK we here from the Conservatives "we'll cut taxes" "we'll spend more on our military, more police, prisons, border security, anti-terrorism etc". But when asked how they would pay for all this extra spending and afford tax cuts they just mumble something about cutting back on waste and inefficiency.

I understand it can be difficult to be specific but tax less, spend more (what seemed to be the Bush policy) is not going to work in the long term.

Despite what it may seem like, the tax proposals in the U.S. are much like the UK. Though it is clearly illustrated in the chart posted I highly doubt most of those percentages and amounts will infact turn out that way. I mean it won't be that far off, but at this time the politicians will say anything to get the votes.

Also with the current war situation and billion dollar debts, it will be interesting to see what actually happens come January.

[weaver]

The US used to have the lowest tax rate for corporations around the world. Today we are one of the higher. NOT because we raised it - but because everyone lowered theres to compete with us.

We need to reduce corporate tax rates
Leave civilian tax rates as is
Reduce govt. funding - from military to social. Across the board. 10% is a good starting figure. I would slash EVERYTHING _ even things I support like NASA until the budget is under control, tax figures drive a positive instead of deficit.

Raise interest rates 2-3% to drive the USD back up and to encourage SAVINGS

[rifiki]

Weaver Im going to have ask where you get the fact about the US having one of the highest tax in the world. Compared to the other successful democracies and countries, we still have the lowest. Most of the other countries have high taxes because the government pays for Health care and items like that.

WOOPS!!!

Misread i was talking about civilian taxes not corporate. Sorry guys. My post is pointless.