Thursday, June 12, 2008

McCain's tax plan benefits affluent, Obama's helps low- and middle-income

For a good comparison of the Obama and McCain tax, plans, check out this "preliminary analysis" by the Tax Policy Center sponsored by the Urban Institute and the Brookings Institution.

Nut graf:
"The two candidates' plans would have sharply different distributional effects. Senator McCain's tax cuts would primarily benefit those with very high incomes, almost all of whom would receive large tax cuts that would, on average, raise their after-tax incomes by more than twice the average for all households. Many fewer households at the bottom of the income distribution would get tax cuts and those whose taxes fall would, on average, see their after-tax income rise much less. In marked contrast, Senator Obama offers much larger tax breaks to low- and middle-income taxpayers and would increase taxes on high-income taxpayers. The largest tax cuts, as a share of income, would go to those at the bottom of the income distribution, while taxpayers with the highest income would see their taxes rise."

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