Taxes, with numbers and citations
My dad got a fraudulent e-mail about how Obama is going to tax the crap out of everyone, which inspired me and Leah to actually research the facts. (Tell EVERYONE to distrust campaign e-mails that don't contain citations!)
For light and truth, here's Obama's plan:
1. CNN: http://www.cnn.com/2007/POLITICS/09/18/obama.taxplan/index.html
Obama would keep the Bush tax cuts except those for the richest 1% of Americans. According to CNN, "His plan means billions in breaks by nixing income taxes for the 7 million senior citizens making less than $50,000 a year, establishing a universal credit for the 10 million homeowners who do not itemize their deductions, and providing 150 million Americans with tax cuts of up to $1,000."
2. Chicago Sun-Times article on whose tax plan is better for you, depending on your income: http://www.suntimes.com/news/politics/obama/1031268,CST-NWS-tax30.article
For house sales, there would be no taxes on PROFITS up to $250K for single filers or $500K for joint filers. For inheritance taxes, there would be no taxes on estates under $3.5 million.
For capital gains tax, most people would remain at 15% for capital gains and for dividends. Obama says that for single filers making over $250K, the rate would be increased to maybe 20%, and in no circumstance more than 28%. (The 39% figure cited in a McCain e-mail is completely wrong.)
3. 39-page analysis by economists at the Tax Policy Center of the Brookings Institution: http://www.taxpolicycenter.org/UploadedPDF/411693_CandidateTaxPlans.pdf
This paper examines both Obama and McCain's tax proposals in detail, so it is a good resource if you really want to see the details of each plan. The economists also analyze the effects of each tax proposal on budget surpluses or budget deficits, and generally finds that McCain's plan would reduce the money available to the government. McCain's proposals for closing the gaps between spending and revenues (such as eliminating earmarked funds) were not found to be sufficient to balance the budget, even without taking into account the fact that McCain's proposals for the Iraq war (and/or Iranian war) will be likely to cost a great deal more money than Obama's 2-year withdrawal plan.
4. Comparison chart: http://www.suntimes.com/news/politics/obama/1031678,obamamccaintaxplans.article
Lastly, here is a simple chart comparing the proposed income tax rates (only income, not capital gains, inheritance, etc.) for each income bracket.
The tax plans Obama McCain $227,000 - a year - plus $23,000 more $15,000 less $112,000 - $227,000 (15% of population) $2,300 less $3,200 less $66,000 - $112,000 (20% of population) $1,290 less ($500 per worker tax credit for $0 to $150,000) $1,009 less $38,000 - $66,000 (20% of population) $1,042 less $319 less $19,000 - $38,000 (20% of population) $892 less $113 less $0 - $19,000 (20% of population) $567 less $19 less Tax breaks for all: College credit: $4,000 a year per student in college Double dependent credit: from $3,500 to $7,000 Impact of tax changes on federal budget: Returns $700 billion Costs $600 billion Source: Urban-Brookings Tax Policy Center. Numbers are estimates and averages.
For light and truth, here's Obama's plan:
1. CNN: http://www.cnn.com/2007/POLITICS/09/18/obama.taxplan/index.html
Obama would keep the Bush tax cuts except those for the richest 1% of Americans. According to CNN, "His plan means billions in breaks by nixing income taxes for the 7 million senior citizens making less than $50,000 a year, establishing a universal credit for the 10 million homeowners who do not itemize their deductions, and providing 150 million Americans with tax cuts of up to $1,000."
2. Chicago Sun-Times article on whose tax plan is better for you, depending on your income: http://www.suntimes.com/news/politics/obama/1031268,CST-NWS-tax30.article
For house sales, there would be no taxes on PROFITS up to $250K for single filers or $500K for joint filers. For inheritance taxes, there would be no taxes on estates under $3.5 million.
For capital gains tax, most people would remain at 15% for capital gains and for dividends. Obama says that for single filers making over $250K, the rate would be increased to maybe 20%, and in no circumstance more than 28%. (The 39% figure cited in a McCain e-mail is completely wrong.)
3. 39-page analysis by economists at the Tax Policy Center of the Brookings Institution: http://www.taxpolicycenter.org/UploadedPDF/411693_CandidateTaxPlans.pdf
This paper examines both Obama and McCain's tax proposals in detail, so it is a good resource if you really want to see the details of each plan. The economists also analyze the effects of each tax proposal on budget surpluses or budget deficits, and generally finds that McCain's plan would reduce the money available to the government. McCain's proposals for closing the gaps between spending and revenues (such as eliminating earmarked funds) were not found to be sufficient to balance the budget, even without taking into account the fact that McCain's proposals for the Iraq war (and/or Iranian war) will be likely to cost a great deal more money than Obama's 2-year withdrawal plan.
4. Comparison chart: http://www.suntimes.com/news/politics/obama/1031678,obamamccaintaxplans.article
Lastly, here is a simple chart comparing the proposed income tax rates (only income, not capital gains, inheritance, etc.) for each income bracket.
The tax plans Obama McCain $227,000 - a year - plus $23,000 more $15,000 less $112,000 - $227,000 (15% of population) $2,300 less $3,200 less $66,000 - $112,000 (20% of population) $1,290 less ($500 per worker tax credit for $0 to $150,000) $1,009 less $38,000 - $66,000 (20% of population) $1,042 less $319 less $19,000 - $38,000 (20% of population) $892 less $113 less $0 - $19,000 (20% of population) $567 less $19 less Tax breaks for all: College credit: $4,000 a year per student in college Double dependent credit: from $3,500 to $7,000 Impact of tax changes on federal budget: Returns $700 billion Costs $600 billion Source: Urban-Brookings Tax Policy Center. Numbers are estimates and averages.