McCain’s tax cuts would help those with very high incomes; Obama would offer breaks to low- and middle-income earners and increase the burden on the rich

Essential Difference
Obama is more aggressive in the number of his proposed tax plans. They range from creating income-related subsidies for health insurance to refundable “Making Work Pay” credits and “Universal Mortgage” credits. He’ll increase the maximum capital-gains tax to 25%. He will keep some of the 2001 and 2003 tax laws, such as the child-credit expansions and the 10%, 15%, 25%, and 28% income rates.
That breakdown of the two tax plans comes from the Tax Policy Center, a joint venture between the Urban Institute and the Brookings Institution. Its recent analysis captures the essential difference between the two tax approaches:
• 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 aftertax 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 aftertax 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 distribution, while taxpayers with the highest income would see their taxes rise.
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