• 95% of working families would get a tax cut from Obama
• 100 million Americans would get NO tax cut from McCain
• Most would get a larger tax cut from Obama
They also have a handy, non-partisan tax calculator under each plan. And links to everything you might be curious to know.
Here are the numbers:
1. Pre-tax $200-500k: Obama raises taxes $3,546, McCain cuts $1,892.
2. Pre-tax $500-1mil: Obama raises taxes $30,499, McCain cuts $6,825.
3. Pre-tax $1mil+: Obama raises taxes $262,371, McCain cuts $58,632.
In sum, Obama's plan involves
* large increases in taxes paid by the highest-earning Americans, who represent a very small share of people but take in a (relatively) very large share of pre-tax income, coupled with
* moderate-to-large reductions in the net tax bill faced by everyone else.
By contrast, McCain's plan involves
* smaller, but still large, reductions in taxes paid by the highest-earning Americans, coupled with
* very small reductions in the net tax bill faced by everyone else.
(I stress again that both plans add substantially to the federal debt relative to current law, which means that someone will have to pay the bill later; again, though, that bill would be smaller with Obama's plan than with McCain's.)
This chart tells a pretty simple story. McCain's plan would reduce all groups' average tax rates, though generally by very little. Except for those making more than a million dollars a year, who would see a drop in average tax rates of 1.8 points, McCain's plan would reduce the average tax rate by less than one percentage point across the board.
By contrast, Obama's plan would reduce average tax rates by a moderate to large amount (between 1.4 and 8.1 percentage points) for all groups with pre-tax income below $75k; those in the $75-100k and $100-200k groups would see average tax rates fall by 0.8 and 0.3 percent. Most notably, those in the three highest groups would see moderately small (1.2 percent for $200-500k) to large (4.1 and 8.0 percent for those making $500k-$1mil and $1mil+) increases in their average tax rates.