Doing The Math On Candidates' Tax Plans

CBS Evening News Crunches The Numbers To Find Out How Each Candidates' Proposed Tax Policy Would Affect Your Wallet

(CBS)  CBS News asked the non-partisan Tax Policy Center to calculate what individuals' tax burdens would be under each of Barack Obama and John McCain's proposed plans.

The first example family had a modest income of $35,000 a year. Under the current law, that family gets a tax credit - a check from the government - of $2,765, CBS News correspondent Nancy Cordes reports.

Obama and McCain would give them even more: $1,400 more from Obama and $480 more from McCain.

The next family of four made $50,000, the median income. Half the country's tax filers make that much or less.

Right now their 2009 tax bill was slated to be about $772.

But McCain would double the tax deduction for children, dropping their bill to $51. Obama promises a new worker tax credit, which would actually wipe out their bill, leaving them with a refund for $232.

At $150,000, Obama and McCain's tax bills are nearly identical. Right now that family's bill is $18,370.

Obama would shrink it by about $1,000; McCain, by $1,200.

At $200,000, a family's tax bill would stay the same under both candidates. But at the top of the ladder, $250,000, things change.

Not under McCain, who continues to bill that family just more than $42,000. But this is where Obama's tax increase kicks in - in this case, by $600.

"The bottom line is neither man pays for his tax cuts," said Robertson Williams of the Tax Policy Center. "By our estimates, Sen. Obama's plan would increase the federal deficit by about $3.5 trillion over the next 10 years. Sen. McCain would be even worse - about $5 trillion."

Which suggests that unlike our four families, neither candidate is focused on balancing his budget - yet.

[frillysunshi]

Thank you CBS and Nancy for this informative piece. I read Wyatt Andrews'' article yesterday and was left with the impression that he was biased b/c he failed to compare Obama and McCain''s plan and also to cite where he was getting his info from. As I can tell you did both, and I feel more comfortable with who I cast my vote for. Thank you.

[kimchongse]

Go to NumbersThatMatter.com to calculate what YOU will save based on YOUR income.

http://www.numbersthatmatter.com/

[aldon61]

Do your homework. Stop relying on biased "facts" from websites from EITHER Obama or McCain. Use data from the US Census to get population and income levels. If only the 1.6 million families making over $250K per year pay for Obama''''s $1.2 trillion spending package, each family will receive a $750,000 tax bill, on top of what they are already paying. There are not enough people in this group to spread out the bill. This means the income level has to be lowered to include middle class to pay the $1.2 trillion.


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Posted by ronarndt at 03:13 PM : Oct 31, 2008

I''ll take the Tex Policy Center''s word for it, they are non-biased.

[ronarndt]

Do your homework. Stop relying on biased "facts" from websites from EITHER Obama or McCain. Use data from the US Census to get population and income levels. If only the 1.6 million families making over $250K per year pay for Obama''s $1.2 trillion spending package, each family will receive a $750,000 tax bill, on top of what they are already paying. There are not enough people in this group to spread out the bill. This means the income level has to be lowered to include middle class to pay the $1.2 trillion.

[ronarndt]

Do your homework. Stop relying on biased "facts" from websites from EITHER Obama or McCain (or news organizations). Use data from the US Census to get population and income levels. If only the 1.6 million families making over $250K per year pay for Obama''s $1.2 trillion spending package, each family will receive a $750,000 tax bill, on top of what they are already paying. There are not enough people in this group to spread out the bill. This means the income level has to be lowered to include middle class to pay the $1.2 trillion.

[vegas11408]

Sickens me that McCain the rich would be tax less and get richer. So perhaps McCain is doing it all for himself, reduce tax for the rich and reduce estate tax from 45% to 15%. And he owns what 7 homes? Seems like a selfish SOB to me...Appears the Rich was to exploit many of middle class americans...

[meinnv]

The first example family had a modest income of $35,000 a year. Under the current law, that family gets a tax credit - a check from the government - of $2,765, CBS News correspondent Nancy Cordes reports.

Obama and McCain would give them even more: $1,400 more from Obama and $480 more from McCain.

The next family of four made $50,000, the median income. Half the country''s tax filers make that much or less.

******************

My bad, the way it started, they said "a family"; then continued with "family of four".

Now here''s the real issue, what about the families of say 2, 3 or 5 or more??

What do the smaller families see in their tax future??

What about the families with 5 or more???

Like my mother and myself, what would our tax future look like??

Tried the website, doesn''t give you much since they only ask the "yearly" amount. Not about your familiy size. Looking at that misleads me into thinking our taxes would drop under Obama.

In actuality, would they???

[meinnv]

The mail carrier just got here, what are the chances of me seeing the government bail-out check today??

Hahahahaha

[meinnv]

Here is another idea....

Instead of bailing out companies who have sqaundered away their undeserved millions/billions of dollars on hair-brained schemes and GREED, why not invest in the people??

Yeah, novel idea there. Taking care of hard-working Americans first. Hang on people it could catch on.

Like those working their butts off to pay the IRS?? As I said, my mother owes $3400 per year, and she isn''t rich. It''s her and me. She works, I would if my Asthma was under control (I haven''t been on any Asthma maintenance meds since I turned 19 and her insurance dropped me), so I live with her. She doesn''t have a problem with it.

She is taking care of other people by paying into the ill-conceived IRS, why not reward her for not allowing me to be the government''s burden?? I don''t receive public assistance, never did and likely never will.

If I were homeless I would qualify for everything under the sun & moon. If everyone took care of themselves or their famlies, we wouldn''t need social programs--welfare, medicaid or food stamps.

She has been responsible and not allowed me to be the burden of society, and there are others like her who deserve the bail-out, not the greedy corporations.

So, when can we see our check??? LMBO

[kimchongse]

NumbersThatMatter.com lets you calculate what YOU will save based on YOUR income.

http://www.numbersthatmatter.com/

[meinnv]

I think before the media reports on these so called "family" tax plans:


"A FAMILY CONSISTENTING OF........" would see their tax bill at $XX.XX, and warn "KEEP IN MIND IF YOU ARE SINGLE OR HAVE NO CHILDREN, IT WOULD BE $XX.XX".

Here one would think that a single parent & one kid wouldn''t have to pay taxes. This is ridiculous.

Oh, and FYI, the IRS says POVERTY is defined as 60% of your paycheck paying for living expenses--ie: rent, food, clothing.

And, also our monthly expenses don''t include clothing or clothing care which is under the IRS''s "living standards". But, thankfully we buy food on sale and clothing when we are stocked up on food.

WHERE''S OUR ECONOMIC BAIL-OUT????

LMBO in Las Vegas. NV :)

[meinnv]

My mother makes, with her bonus mind you, around $40,000 per year. We are not rich by any means. We live rather modestly, and around our area that isn''t easy. Las Vegas is not cheap to live in, she has been at her job over 17 years, and if we had "savings" we would move. But we can''t and that is it.

We spend $2400 a month on living expenses, which doesn''t include our prescriptions the insurance doesn''t cover (she has insurance, I don''t), like Advair because of our moderate-severe Asthma (that is $360 a month for us). Without my Asthma meds, I can not work. She is lucky since she has insurance and can afford "cheap" meds, while I am left with nothing, and thus left unemployed.

That leaves $700 for groceries, medications, oh wait, I forgot taxes, because she has to go exempt so we can make ends meet.

That means she owes the IRS around $3400 a year. That is our medication money.

Here is an idea--INCOMING VERSUS OUTGOING tax system. You pay a percentage on "disposable" income, AFTER you''ve paid for all your living expenses, at the end of the year and not during it.

By the way, Obama or McCain, here''s a question.....

What''s my mom''s tax bill look like under your plan??

[meinnv]

Here is something the media, and everyone is forgetting to say:

WHAT THE HECK DO THEY DEFINE AS A "FAMILY"???

Seriously?? What about the single mom, making $45,000 trying to take care of her daughter?

She''s got rent (which in this area can go as high as $1500 a month), utilities (in the summer electric is over $225 with high temps in the 110''s), food (forget McD''s that''s too expensive), car expenses (if she doesn''t have access or lives near public transportation) which can be easily $600 ($300+ car payment for those who don''t have good credit, insurance, gas & maintenance), medical expenses.

And for those who have young children, there is child care.

The list goes on.

[hypnotoad72]

%u201COil Giant $14.8 billion profit shatters Its Own Record For Biggest Quarterly Profit By U.S. Corporation%u201D

Don''''t worry about coorporate profits because if Obama is elected american business will no longer be profitable and if they are Obama will steal it back and redistribute it to the middle class.

So vote Obama we will have a middle class beholden to government and coorporations that are not in business for profits. Because god forbid anyone trys to make a profit you will be labeled as greedy.

Posted by Mccain08NC at 12:00 PM : Oct 31, 2008
---

Profit is one thing, but closing out a worker''s job and relocating it elsewhere because it''s "cheaper" has hidden costs too. Especially if your current workers are good ones. Without people spending, those at the top wouldn''t have wealth either. It''s a symbiosis, and recent fluctuations in the market prove that. Country First means America first and rebuilding the middle class while still allowing people to have basic freedoms.

[kimchongse]

NumbersThatMatter.com provides a calculator to show how much the two tax plans will save You, based on your income level.

http://www.numbersthatmatter.com/

[gotravel1]

Obama''s tax plan is a lie! First he said no one making under $250,000 would see their taxes raised(even though he wants to let the Bush tax cuts expire,so everyone will have their taxes increase),then he lowered it to $200,000 and this week Biden told a TV station that it is now $150,000.Do you see a trend here?They are throwing numbers out to try to get elected,knowing all alomg that they plan to raise EVERYONE''S TAXES,and those who pay no taxes will get a wellfare check.Wake up to the reality that Obama will say anyhting to get elected and is a fraud!

[ilovejoethep]

Consider carefully your choice:
October Surprise:
http://www.youtube.com/watch?v=xyspCRmJv7w
YouTube Search "Suit To Remove Barack Obama"
There are a TON of unanswered questions about the Democrat!

[FHMullane]

Obama''s plan costs less and puts the money in the hands of the people who need it and will spend it. Once things start at the bottom people will buy the things that corporations make and the economy will trickle up... It isn''t going to trickle down. Making the rich richer doesn''t help the little guy and if the little guy can''t spend money on food, TV, furniture, toys, cars then corporate America will continue to take a dump.

The fact that is costs will be paid back once the economy is sound because when people are making good money and corporations make good money taxes are paid and then there will be a pay back.

Enough with Joe the Plumber.... McCain said this guy is his "role model"... now that is sick.

[patocc-2009]

People do realize that the more money people make the more they pay in taxes. I have a feeling that people do not know that or refuse to acknowledge it. I''m middle class and have no problem paying my fair share in taxes. I know if I make more money some day I will pay more. Its the sliding scale we have. But to what extent to we keep raising taxes on 1 class. Raising taxes on 1 class to give to another class to give them $10-20 dollars more a week does what to help them. $20 dollars a week will not improve thier lives all that much. If it does then why don''t all the people who are so much in love with this plan who can spare $20 dollars a week go ahead and pick 1 family living in poverty and give them that money. After a year see how much better they are living.

[vegas11408]

If you go to fact finder, most of McCain/Palin''s comments about Obama''s tax are false and misleading. I do not understand that majority of the Americans who are middle class would tend to go with McCain proposed tax plan to make the rich more richer, with majority of the middle class families worrying about trying to save money for college, home repairs, gas, car, kids clothes, etc. I do not think it is comparable to say that families making over $250,000 or millions will have the same worries like us middle class. At least they have some security financially. McCain as we know is very wealthy. He and his wife will get richer under his tax plan. Obama has admitted that making over $250,000, he should pay more in taxes. I think it is ironic that McCain wants to cut estate tax from 45% to 15% and he owns what 7 houses???? Lets think about what we really need in this world...