Wednesday, September 17, 2008

Tax Plans Compared

Last I heard, 53% of all Americans still believe Obama will raise their taxes.

After yesterday's$85 billion "loan" to AIG to keep yet another failed business afloat, this chart may be a moot point. In the last couple weeks, we've added $5 trillion - yes, with a "t" to the national debt through the acquisition of Fannie and Freddie. We just added another $85 billion. There's a chance the AIG bailout may actually make us a couple billion. I just want to know if I can get an owner discount on my insurance through them.

So here's the part that may be useless. You've probably all seen this chart - it shows the tax plans supported by each of the candidates. It shows in pretty good detail how McCain would cut taxes for everyone but, in classic Republican style, the rich get richer. If you make $2.87 million per year, still middle class by McCain's estimate, you'd get an additional $269,364 off your tax bill. I don't know about you but that would pay off my house and leave enough for a pretty good additional investment. Obama's table cuts taxes for people making less than McCain would give back to the very "middle class" ($226,982 per year) and increase taxes above it. Dang, under Obama's plan, that guy I saw getting off the Gulfstream with his hunting rifle might have to pay $702,885 more to cover the Fannie and Freddie bailouts. Gist is there would be an overall tax cut of 0.3% under Obama's plan, a more reckless 2% under McCain's. Either way you slice it, Obama's plan cuts taxes.

It just doesn't benefit the guy with the Gulfstream.

Here's the same data drawn a little differently. Now both axes of the graph are to-scale. So you can see the percentage of the population on the right side and the percentage tax cut on the bottom. A few other numbers are there for reference sake: The median household income (half the incomes are above, half below), median incomes for males, females, individuals (showing the income gap is alive and well). The benefit of this presentation is it shows in very graphical terms just how many more people would benefit under Obama's plan as opposed to McCains and by how much.

Okay, now I'm not in the bracket that would be hit by Obama's plan. Maybe you are and in that case, it would not be rational for you to vote for Obama. But if you aren't, I'd suggest you take a good long look at your own self-interest.

And if you still believe in supply-side economics, stay tuned. A bit of foreshadowing: It doesn't trickle down.

Charts from Chartjunk.

Cross-posted from A Colorado Progressive.

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