Speaking of Tax Cuts - Compare the Plans

I've never done this before, but one of the comments below the previous article on Reuters' blogsite was so informative, I thought it should be reprinted.

Here's the entire comment from "DS" about the two economic plans -- Obama's vs. McCain's.

September 10th, 2008
4:46 pm GMT

Today in America the wealthiest 1% owns more than everyone in the bottom 95% combined. Income inequality is at its greatest level since the 1920s - right before the great depression. Though the US has continued to make big gains in productivity over the last decade, nearly all of the benefit of those gains has gone to the wealthy, not the workers. American CEOs earned 411 times as much as average workers in 2005, up from 107 times in 1990. In the economic expansion of 2002-2006, the top 1% captured nearly three quarters of income growth.

http://elsa.berkeley.edu/~saez/saez-USto pincomes-2006prel.pdf

This condition is not an accident, but is instead the deliberate goal of Republican economic policy. The rich write the rules! McCain’s proposals will accelerate this trend further by using a tried and true method - fill the campaign dialogue with talk about social issues, personal stories, vague statements (”tax cuts”), and the trickle-down myth, and hope that middle and lower income voters do not read the details. It worked twice with Bush. While they talk about gay marriage to your face, they are literally picking your pocket from behind - systematically redistributing wealth from poor to rich. And here’s the kicker - they don’t think there is anything wrong with the situation! And if you vote for McCain, you are again telling them that you don’t think there is anything wrong with the situation either! The high unemployment level, housing crisis, credit crunch, lower value of the dollar, high gas prices, and increasing national debt are all related to these failed policies. Standards of living in the US have continued to rise only because in most families both people work, and people work longer hours and more days per year (all for lower benefits). Something has to give…

These are the proposed tax plans for the two candidates. You can see that McCain intends to further reduce the tax burden of the wealthiest Americans at the expense of the middle and lower income families. Obama’s plan increases taxes on the wealthy, especially that top 1%, to the benefit of working americans - a first step in reversing the rich-get-richer trend and toward re-building a real middle class. In fact, Obama has offered to actually raise his own taxes for the benefit of the country as a whole. Where are you in this table?

……………… MCCAIN …………. OBAMA
Income ……. Avg tax bill ……. Avg. tax bill
Over $2.9M …. -$269,364 (-4.4%)… +$701,885 (+11.5%)
$603K and up…. -$45,361 (-3.4%)… +$115,974 (+8.7%)
$227K-$603K…… -$7,871 (-3.1%)…….. +$12 (+0.0%)
$161K-$227K…… -$4,380 (-3.0%)….. -$2,789 (-1.9%)
$112K-$161K…… -$2,614 (-2.5%)….. -$2,204 (-2.1%)
$66K-$112K …… -$1,009 (-1.4%)….. -$1,290 (-1.8%)
$38K-$66K …….. -$319 (-0.7%)….. -$1,042 (-2.4%)
$19K-$38K …….. -$113 (-0.5%)……. -$892 (-3.6%)
Under $19K ……… -$19 (-0.2%)……. -$567 (-5.5%)

http://money.cnn.com/2008/06/11/news/eco nomy/candidates_taxproposals_tpc/?postve rsion=2008061113

- Posted by DS