13 October 2008

The Facts...Just the TAX Facts...

This little fact box wasn't part of a paid campaign advertisement. It appeared in Sunday's (October 12, 2008), Parade Magazine.

It's interesting and maybe it's something to think about...

October 12, 2008
How Much Would You Pay in Taxes?
Sens. Barack Obama and John McCain both say they’ll cut federal taxes if elected. Here’s what their proposals would mean for you.

Obama McCain
If you make... you'd
less than $19,000 $567 $21
$19,000-$37,600 $892 $118
$37,600-$66,400 $1118 $325
$66,400-$111,600 $1264 $994
$111,600-$161,000 $2135 $2584




If you're in the top 5% of earners... you'd pay
an extra...
$227,000-$603,400 $121 $8159
$603,400-$2.87 million $93,709 $48,862
more than $2.87 million $542,882 $290,708

*Source: Tax Policy Center. Numbers have been rounded. For complete details, go to TaxPolicyCenter.org.

If your annual salary is less than $112,000, you’d pay less in taxes under Obama’s plan; if your salary is higher, McCain would cut your taxes more. “While the aggregate tax cut is bigger for McCain, a larger number of voters get more money under Obama,” says Alan Viard, a tax-policy expert at the conservative American Enterprise Institute. “Obama is choosing to emphasize tax cuts for the middle class, whereas McCain’s strategy is to keep rates lower at the top as a way to facilitate long-run growth.” For example, a person with an income of $1 million could see his taxes increase under Obama by as much as $94,000, whereas under McCain’s plan he could save about $48,000.

— Rebecca Davis O'Brien

So I guess you could conclude that if you are middle class and keen on paying more taxes, I'd say McCain is your guy. If you're in the top five percent of wage-earners or you're a trust fund baby with more money than you know what to do with, McCain would seem a prudent choice.

If you're middle class and struggling and living paycheck-to-paycheck like many of us, well, you do the math.