A look at what Obama and McCain's tax bill would do in 2009

So I wanted to continue a much needed discussion regarding McCain and Obama's economic policies as it started in my post a week ago on the 11th on a completely different topic of foreign affairs.

The economy is a central focus in everybody's minds. I was in NYC this past week with my girlfriend. The first night we were out there we were invited to a dinner party, one of the men who I met there was just coming home from his day at work as an accounting and investments attorney... and yeah we all had a drink or two. It became clear to me how much of the city will be effected by the drop of investor confidence. Finance is the bread and butter of the Big Apple, and the effect which current events on Wall Street and Main Street will have on the nation will last for years. Jobs are vaporizing. Confidence is slipping. We're not quite clear completely what either candidate's plan is yet completely, but details are starting to come in. 

Lets talk about a few things. What are the differences between Obama and McCain's tax bill?

John McCain continues to state that Barack Obama will raise your taxes, but who exactly is he referring to when he says, “your”? Well, according to US Census Bureau data and data from the Tax Plan Center, Yes. Your taxes are going up. If you're among the upper 3% of the working population making more than $227,000. Here is a chart from The Tax Policy Center that shows how the average tax bill could change depending on who is elected.

BREAKING DOWN THE NUMBERS Source: The Tax Policy Center

MCCAIN OBAMA Income Avg. tax bill Avg. tax bill Over $2.9M -$269,364 +$701,885 $603K and up -$45,361 +$115,974 $227K-$603K -$7,871 +$12 $161K-$227K -$4,380 -$2,789 $112K-$161K -$2,614 -$2,204 $66K-$112K -$1,009 -$1,290 $38K-$66K -$319 -$1,042 $19K-$38K -$113 -$892 Under $19K -$19 -$567

Household Income Distribution Source: US Census Bureau, 2006; income statistics for the year 2005
Bottom 10%	Bottom 20%	Bottom 25%	Middle 33%	Middle 20%	Top 25%	Top 20%	Top 5%	Top 1.5%	Top 1%
$0 to $10,500	$0 to $18,500	$0 to $22,500	$30,000 to $62,500	$35,000 to $55,000	$77,500 and up	$92,000 and up	$167,000 and up	$250,000 and up	$350,000 and up

I posted this previously without an explanation and the numbers seemed to bring out an awfully confused reaction, so lets talk about it here.

(ed. found these next two charts today from the washington post which visualize the statistics quite clearly)

What do these charts tell us? They tell us that under Obama's plan, less than 5% of the population will be paying more taxes. The five percent that can afford to pay more to their country in a time of economic distress. They'll be paying twice as much back to the government than this top 5% of the salary bracket would be paying under McCain's plan.

We also can gather that middle-class Americans making under 66k annually will be seeing a much higher tax return under Obama's plan, watering the beds of  innovation and making it easier for the HUGE middle class of this country to be able to contribute to our economy and stimulate competition--without economic barriers.

No, Actually I'm not drinking any kool-aid. I'm an American just like you, who cares about the problems in this country just as you do. I want the candidate with a clear understanding of the sources of the problems that face not only our national security regarding foreign affairs, but also economic issues. 

We don't have all the answers from either of the candidates on how they are going to pay for either of their economic plans, but that among many other important issues are going to be coming up in the debates beginning this Friday. Until then, lets see what McCain has to say about the economy from his own lips...