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Comparing Obama and McCain Tax Plans Shows McCain Favors the Rich
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Comparing Obama and McCain Tax Plans Shows McCain Favors the Rich
List by:
Picka
Last Updated: 10/7/2008
The facts on the Obama and McCain tax plans clearly show more of the same - blatant Republican tax breaks for the rich. McCain says that Obama is going to raise your taxes. That is true if you are making over $250,000 or are in the top 1% to 2% of households, but the increase for the rich just restores more tax equality between the rich and middle classes that existed prior to 2001. On the flip side, McCain wants to give even more tax breaks for these rich top earners and big business whereas Obama wants to give tax breaks for middle class and small businesses. This list compares the two plans and proves the point that McCain and the Republicans clearly want more tax breaks for the rich. In any case Congress has to approve all tax and spending plans so some of these proposals will die. We understand that the Tax Plans of both Obama and McCain are continually being refined. The economic advisors for both campaigns work directly with the Tax Policy Center, which is one of our main sources of information.
Barack Obama's Tax Plan
John McCain's Tax Plan
Obama’s Tax Plan favors low and middle income families
McCain’s Tax Plan favors the top 1 to 2% of household incomes
Obama would reduce taxes for low and moderate income families, but raise them for high incomes
[1]
McCain would cut all taxes, but high incomes would benefit most.
[1]
By 2012, middle-income taxpayers after-tax income rises by about 5%, a yearly tax cut of $2,200.
[1]
McCain would lift after-tax incomes about 3%, or a tax cut of $1,400 for middle income payers.
[1]
Top 1% would face a $19,000 average tax increase—a 1.5% reduction in after-tax income.
[1]
McCain would cut taxes for the top 1% by more than $125,000, raising their after-tax income 9.5%.
[1]
Families making more than $250,000 will pay same or lower tax rates than they paid in the 1990
[2]
The Bush tax cuts of 2001 and 2003 provided 31% of their benefits to the top 1 percent of taxpayers.
[15]
Under current law Obama's proposals would reduce tax revenues by an estimated $2.9 trillion over the next 10 years.
[1]
Under current law, McCain's tax proposals would reduce tax revenues by an estimated $4.2 trillion over the next 10 years.
[1]
Under current policy (extending current practice) Obama’s proposals would raise $600 billion over 10 years.
[1]
Under current policy, McCain’s proposals would lose $600 billion over 10 years.
[1]
Obama would implement a refundable "Making Work Pay Credit" of 6.2 percent of up to a maximum of $8,100 of earnings $500 for workers or $1,000 for working couples).
[2]
McCain would increase the dependent exemption by two-thirds (phased in at $500 per year from 2010 to 2016).
[1]
Obama will continue to NOT tax the employer contributions of health care insurance plans.
[2]
McCain would offer families a $5,000 tax credit to help buy insurance policies, but then tax employer contributions to those health insurance plans
[20]
[21]
Obama will eliminate income taxes for seniors making less than $50,000 saving them an average of $1,400 per year.
[2]
Even McCain's advisers have acknowledged that his tax on employer contributions to health-care plans would impose a $3.6 trillion tax increase on workers over 10 years.
[22]
Obama’s proposed top tax brackets target the top 1.5% of households.
McCain's retention of the Bush tax brackets sustains tax inequality.
Tax brackets under current law will automatically revert to the levels of the Clinton Administration on January 1, 2011 unless Congress takes action.
The McCain so called “tax cuts” above are really continuing the status quo…that is making permanent, the temporary Bush tax cuts that expire on January 1, 2011.
Obama would retain lower tax brackets, but let the upper two brackets revert to Clinton's 36% and 39.6%.
[1]
The inequalties of the Bush tax cuts that favored the "rich" would in effect be sustained permanently.
[16]
Obama’s capital gains & dividend taxes target the top 1.5% of housholds.
McCain would keep the Bush tax cuts for capital gains and dividends.
Obama would raise the capital gains tax rate from current 15% to 20% for those couples making over $250,000 per year.
[2]
The Bush tax cuts lowered capital gains tax from Clinton's 28% to 15%.
[3]
Top dividend tax rate would remain at the current 15% for those earning less than $250,000 (or $200,000 for single people)
[2]
McCain claims that "Low taxes on dividends and capital gains promote saving, channel investment dollars to innovative, high-value uses".
[4]
Obama would freeze estate taxes at 2009 levels.
McCain’s Estate Tax Plan favors the very rich.
The 2009 level for Federal estate tax is 45% for estates above $3.5 million ($7 million for couples).
[2]
McCain would set the Federal estate tax at 15 percent for estates above $5 million ($10 million for couples).
[4]
Obama has a real plan to fund Social Security for the future.
McCain proposes privatizing part of Social Security.
Obama's plan calls for taxing income above $250,000 (but no change on income between $102,000 and $250,000).
[2]
McCain has called Social Security a “disgrace”. "It's an absolute disgrace and its got to be fixed".
[5]
This increase of 2 to 4% world be deferred about 10 years until revenues exceed payments for benefits (about 2017).
[2]
"I want young workers to be able to take part of their own money...and put it in [private accounts]".
[5]
Obama has repeatedly voted against Republican amendments that aimed to privatize Social Security or cut benefits.
[6]
McCain has been vague about how he would fund private accounts without cutting benefits or raising taxes.
[7]
Obama will leave top corporate tax rate unchanged at 35%.
McCain would cut the top corporate tax rate to 25%.
Obama would cut capital gains taxes to 0% for small businesses and start-ups.
[2]
McCain would continue to tax small businesses at the 15% capital gains rate.
[4]
Obama would end the corporate tax breaks of deferring or avoiding taxes entirely by investing overseas, and thus effectively "shipping jobs overseas".
[2]
McCain claims that the 35% top corporate tax rate is the second-highest rate among the world’s advanced economies and that has affected our competitiveness.
[4]
A centerpiece of Obama's plan gives tax incentives to companies that expand or keep jobs at home instead of shipping them overseas.
[19]
McCain fails to mention numerous loopholes in US tax laws that offset high tax rates. The US has the fourth lowest corporate tax revenues among OECD countries.
[8]
[17]
Obama would provide a 50% health care tax credit to small businesses and lower health insurance costs by $2,500 per family for all firms.
[2]
A new GAO report has found that “two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005.”
[18]
Obama would make Permanent the R&D Tax Credit giving firms more incentive to invest in new R&D jobs in the United States.
[2]
McCain would reform the R&D credit into a flat 10% credit, which would weaken incentives for investing in new R&D jobs.
Obama would extend the federal Production Tax Credit (PTC) for 5 years to encourage investment in renewable energy.
[2]
McCain has repeatedly opposed legislation that would have extended production tax credits for renewable energy.
[2]
Obama campaign ads focus on middle class tax cuts.
McCain’s campaign ads and statements make blatant false claims.
Obama ads highlight independent analyses that Obama's tax cut plan would mean three times more in savings for the middle class than McCain
[9]
McCain falsely claims in a TV ad that Obama would "raise taxes on middle class."
[10]
Obama ads are also critical of McCain's plan to give big corporations and oil companies hundreds of billions of dollars in tax breaks
[9]
McCain falsely claims that raising the capital gains tax would have a direct effect on 100 million Americans.
[10]
Quotes/Facts/Assessments from 3rd Parties.
Quotes/Facts/Assessments from 3rd Parties
"Obama's Tax Plan Adds Up." His proposals would "raise $600 billion and Senator McCain's proposals lose a similar amount".
[1]
[11]
"McCain's Budget Figures Don't Add Up". He cannot "extend Bush tax cuts, pile on other tax breaks,... and still balance the budget..."
[11]
Obama "promises tax cuts for middle-income taxpayers and would increase rates only for families with incomes over $250,000 or individuals over $200,000".
[12]
[14]
"McCain misrepresents Obama's tax proposals again. And again, and again".
[14]
Under Obama's plan, "more than $131 billion would be redistributed from the top 1 percent of taxpayers to all other taxpayers.”
[13]
McCain plan would "deliver 58 percent of its benefits to the top 1% of taxpayers", compared "to 31% with Bush tax cuts".
[15]
The Obama Plan is "more fiscally responsible, it is also likely to lead to better economic growth".
[12]
"McCain does nothing about income inequality. It's skewed toward upper-income Americans to the exclusion of most everyone else".
[12]
The Wall St Journal notes that "Sen. Obama is focused on cutting taxes for middle-class families and small businesses, and investing in key areas like health, innovation and education."
[22]
WSJ: "The McCain plan would lead to deficits the likes of which we have never seen. It would take money from the middle class and from future generations so that the wealthy can live better today"
[22]
The Wall St. Journal states that Obama's middle-class tax cuts "reduce revenues to less than 18.2% of GDP -- the level of taxes that prevailed under President Reagan."
[22]
Alan Greenspan has said that he cannot get behind McCain's $3.3 billion in tax cuts. "I'm not in favor of financing tax cuts with borrowed money." "The nation cannot afford cuts that big."
[23]
"Economists on both sides of the debate acknowledge that strong Democratic gains in Congress might lead to an Obama-like tax structure even if McCain wins the White House."
[12]
Conservative economist concedes, "... this debate could turn out to be academic if a Democratic Congress won't extend the Bush tax program".
[12]
The Economist polling economists finds that they overwhelmingly believe that "Obama has the superior economic plan, a firmer grasp of economics and will appoint better economic advisors."
[24]
Other Provisions in Barack Obama's Tax Plan
Other Provisions in John McCain's Tax Plan
Obama would retain the 2007 patch for the Alternative Minimum Tax and index it to inflation.
[1]
McCain would retain the 2007 patch for the AMT, and increase it by 5% per year after the year 2013. [Note his campaign rhetoric falsely claims he will eliminate the AMT.]
[1]
Obama would create a 10 % Universal Mortgage Credit to provide homeowners who do not itemize tax relief.
[2]
Categories:
Taxes
People:
Barack Obama
&
John McCain
List Views:
2328
List Sources
[1]
Article: Updated Analysis of the 2008 Presidential Candidates’ Tax Plans
- Tax Policy Center, Thursday, August 28, 2008
[2]
Link: Barack Obama's Comprehensive Tax Plan
- Saturday, August 30, 2008
[3]
Link: Wikipedia - Capital Gains Tax in the United States
- Monday, September 01, 2008
[4]
Link: John McCain Tax Cut Plan
- Saturday, August 30, 2008
[5]
Article: McCainTakes a Social Security Risk
- L. A. Times, Monday, July 14, 2008
[6]
Link: Barack Obama - Seniors, Social Security
- Monday, September 01, 2008
[7]
Article: John McCain does not understand Social Security.
- The American Prospect, Thursday, July 10, 2008
[8]
Article: Giant Hole In '2nd Highest Corporate Tax Rate' Myth
- News Trust, Tuesday, August 12, 2008
[9]
Article: Obama ad focuses on tax cuts
- Boston Globe, Wednesday, August 20, 2008
[10]
Article: More Evidence John McCain is Cluless When it Comes to the Economy
- Progressive Politics Examiner, Monday, April 28, 2008
[11]
Article: Obama Rapid Response to McCain "millions" ad
- Chicago Sun Times, Wednesday, August 20, 2008
[12]
Article: McCain and Obama tax plans diverge on wealth
- L. A. Times, Thursday, August 21, 2008
[13]
Article: Obama Tax Plan Show Dramatic Redistribution
- Tuesday, July 08, 2008
[14]
Article: More Tax Deceptions
- Fact Check, Friday, August 08, 2008
[15]
Article: Five Easy Pieces and Two Trillion Dollars
- Center for American Progress, Friday, March 21, 2008
[16]
Article: Tax Cuts: Myths and Realities
- Center on Budget Policy and Priorities, Friday, May 09, 2008
[17]
Article: Giant Hole In "2nd Highest Corporate Tax Rate" Myth
- Campaing for America's Future, Tuesday, August 12, 2008
[18]
Article: Most Companies Escape Paying Federal Income Taxes
- Fox Business, Tuesday, August 12, 2008
[19]
Article: Obama to Stop Tax Benefits if Jobs are Shipped Overseas
- The Business Edition, Tuesday, September 02, 2008
[20]
Article: McCain proposing tax credit to buy health insurance
- Houston Chronicle, Tuesday, April 29, 2008
[21]
Article: McCain Secretly Plans New Tax on Middle Class
- The Hill's Congress Blog, Tuesday, September 16, 2008
[22]
Article: The Obama Tax Plan
- Wall Street Journal, Thursday, August 14, 2008
[23]
Article: McCain-Endorser Greenspan Does Not Endorse His Tax Cuts
- ABC News, Saturday, September 13, 2008
[24]
Article: Examining the candidates
- The Economist, Thursday, October 02, 2008