EDMOND — Now that the political conventions have ended it is official, the next president will be either Barack Obama or John McCain. During the next two months we will hear a lot about these two candidates, but few issues better illustrate the differences in these two candidates than their tax plans.
The non-partisan Tax Policy Center recently released an analysis of the tax plans proposed by the two presidential candidates, and the differences are striking. Of the two, McCain is clearly the larger tax cutter. The TPC estimates that the McCain tax plan will reduce tax revenues by more than $4.1 trillion during the next 10 years compared to current law, while Obama’s tax cuts total $2.9 trillion during the next 10 years.
But what is most striking is how the candidates differ on the distribution of the tax cuts. The Obama plan provides the greatest tax cuts to middle- and lower-income families, while raising taxes on the wealthiest families. On the other hand the McCain plan cuts taxes for everyone but provides its greatest benefits to the wealthiest families. Interestingly though, according to the TPC analysis the Obama plan provides greater tax relief to 80 percent of Americans than the McCain plan does.
The TPC estimates that taxpayers in the middle income quintile (those in the 40th-60th percentile) would see their after-tax income increase by more than 4 percent under the Obama plan ($2,000 for a family earning $50,000). However, under the McCain plan, those same households would see their after-tax income rise by only 3 percent ($1,500 for a family earning $50,000), meaning the Obama plan offers the largest tax cuts for middle-class families.
For the wealthiest Americans though, the story is reversed. Under the McCain plan the highest earning Americans (those in the top 1 percent) would see their after tax income rise by a whopping 10 percent. However, under the Obama plan these same people will see their after tax income decrease by 1 percent. Clearly, the McCain plan benefits the highest-earning Americans more.
Now some might argue that it is unfair for Obama to propose cutting taxes for 80 percent of the population and to raise taxes on the highest earning 20 percent. Of course, some also might argue that it is unfair that the McCain plan would raise the after tax income of the richest Americans by 10 percent while raising the after tax incomes of middle-class Americans by only 3 percent. The fairness of the plans is subjective. But what is not open for debate is that the Obama plan would provide the greatest tax relief to middle-class families, while the McCain plan provides the greatest tax relief to the wealthiest families.
In the next two months American voters will decide which candidate they prefer. Along the way we will need to consider many important issues, including Iraq, the economy, energy policy and climate change. But if this election comes down to which candidate will provide the greatest tax relief to the greatest number of Americans, then the Tax Policy Center analysis indicates that Obama will be the next president of the United States.
MICKEY HEPNER is an associate professor of economics at the University of Central Oklahoma.
Opinion
Comparing the McCain and Obama tax plans
- Opinion
-
-
Aerospace tax credits ensure viability of industry
April 15, 1953. Tax day again. It also marked the last time the U.S. lost a soldier from an enemy air attack.
-
Tax outrage stems from moral distaste
A study published this week in the journal Symbolic Interaction revisits the relationship between taxation and morality.
-
Suddenly, Asperger’s Syndrome is cured
My 11-year-old grandson just took his first trip off the diving board.
-
Book recalls Anastasia's story
In February of 1916 a young woman was pulled from the icy waters of a canal in Berlin, Germany.
-
iRead, you read, we all win
I’m thrilled to be able to announce the Oklahoma State Department of Education’s iRead initiative. Check out our iRead page on our website, http://ok.gov/sde/newsblogs/iRead.
With iRead, our goal is to ensure literacy for all Oklahomans from birth to 12th grade. Literacy is more than just reading. Being literate encompasses listening, speaking, reading, and writing — really all of communication. -
Growth revenue should go back to taxpayers
Over the next few days, the Legislature will consider a proposal to reduce Oklahoma’s income tax.
-
Thunder Up for Oklahoma
The Thunder basketball team has a big impact on the state of Oklahoma. Not just because we are excelling in the NBA playoffs.
-
Growth revenue should go back to taxpayers
Over the next few days, the Legislature will consider a proposal to reduce Oklahoma’s income tax. This year, Oklahoma state government will have more than $200 million of new growth revenue to spend. I believe it is vital for this revenue to go back to the taxpayers who overfinanced state government. This is important, because if the money is not returned, it will almost certainly be used to grow the size of government.
-
Tax cuts don’t make the grade
When is not big enough also too big?
-
Tax plan means keeping more of what you earn
The discussion about cutting Oklahoma’s income tax started before the legislative session.
- More Opinion Headlines
-
Aerospace tax credits ensure viability of industry
