Archive for the ‘Taxes’ Category
Brass Tacks: The Tax Plan Details
Presidential Candidates Offer New Tax Policies
With the Democrat and Republican Conventions nominating their Presidential and Vice-Presidential candidates, the fall political season will soon be in full swing. The campaigns of both Senators Obama and McCain have released proposals that state their positions on taxes.
While the tax proposals are inevitably changing as the campaigns progress, there is a clear difference in their underlying perspectives. It is helpful to examine the “What Will I Pay” question by comparing the two plans. The Urban-Brookings Tax Policy Center has attempted to compare the tax liability for individuals based on the Obama and McCain proposals.
Determining personal taxes is a somewhat complicated issue, but the nonpartisan Tax Policy Center has attempted to compare the result if the major proposals of both candidates were implemented. One of the published reports compares the Obama and McCain tax plans for a family of two parents and two dependent children.
Assume that this family of four is called USA Family. With an income of $50,000, the TPC estimates that USA Family saves $647 under the Obama Plan and $721 with the McCain plan.
If USA Family’s income is $100,000, then the savings under Sen. Obama’s plan is $1,883 and for the McCain plan $3,085. With USA Family income of $150,000, the Obama tax cut is $3,393 and the McCain plan is the same.
If USA Family has still higher income, the Obama plan involves a tax increase. The $500,000 income USA Family pays $6,727 more in tax under the Obama plan and has no change under the McCain plan. Finally, a USA Family with income of $1 million would pay an added $42,715 under the Obama plan and be unchanged under the McCain plan.
Editor’s Note: Your editor and this organization [Salvation Army] take no position on the presidential candidates or the fall election. This information on tax proposals of both parties is offered as an educational service to our friends. The following two sections describe in more detail the specifics of the Obama and the McCain proposals. Continue reading