Effects of the Obama Tax Plan
From my liveblog of last night’s Vice-Presidential debate…
[9:15] I don’t believe the “no one under $250,000 will see a tax-increase” claim. Isn’t the Obama tax plan based on a child tax-credit?The exact statement by Joe Biden I was referring to was…
No one making less than $250,000 under Barack Obama’s plan will see one single penny of their tax raised, whether it’s their capital gains tax, their income tax, investment tax, any tax.The source of my skepticism is the Tax Policy Center of the Urban Institute and the Brookings Institution. According to their “Analysis of the 2008 Presidential Candidates’ Tax Plans“, because Obama’s plan is based on various credits and deductions, rather than a direct change in rates, taxes will go up for some households making less than $250,000, if they don’t qualify for the full package of adjustments…
Senator Obama’s Tax Proposals of August 14, 2008: Economic Advisers’ Version (No Payroll Surtax)
Distribution of Federal Tax Change by Cash Income Percentile, 2009
|Cash Income Percentile||Percent of Units|
With Tax Cut
|Percent of Units|
With Tax Increase
…The breaks are (in 2008 dollars): 20% $18,981, 40% $37,595, 60% $66,354, 80% $111,645, 90% $160,972, 95% $226,918…
Note the the entries in the column at the far-right are not all zeros, as Joe Biden and Barack Obama claim they should be except for the “top quintile” entry.
So should the claim of “no one under $250,000” be considered an exaggeration within the usual bounds of politics — or should the standard that progressive bloggers have been applying to the McCain campaign be applied here also, and the statement that Barack Obama won’t raise taxes on anyone making less than $250,000 be considered an outright lie?