McCain or Obama? Who’ll be better for your wallet?
I want to keep this factual. This is not an article on who should be the next President, or as these campaigns usually go, who shouldn’t be President. This is a simple presentation of facts as they stand today. Bottom line - who’d be better for your bottom line next year...Obama or McCain?
The Tax Policy Center has done some serious analysis of the current tax policies of our two candidates. You can read about it here , and download the 37-page report here . Of course, as these are preliminary figures they’re likely to change a little, but not a lot. Sam Pizzigati of the blog Too Much analysed the figures . And the results, while not exactly surprising, do provide food for thought.
As you’d expect, Obama’s tax plan will be better for lower-income families. And McCain’s tax plan favors the wealthy. There is a simple graph below that outlines the figures.
First, Obama. Under his proposed tax plan, the super-rich (around 140,000 households or the top 0.1% of the US population) have a lot to worry about if he becomes President. In fact, in 2009 the top 0.1% will pay roughly $701,885 MORE in taxes than they do currently. If you’re making over $2.9 million a year, your taxes will increase to 39.2%.
The middle-income earners (the middle 20% of the US, earning between $37,595 and $66,354) do a lot better under Obama, getting a boost of roughly $1042, or around 2.4%.
And the low-income families (the poorest 20%, earning below $18,981) get the biggest boost of all. They’ll be around $567 better off, an increase of 5.5%.
Now McCain. Under his proposal, the super-rich get a little richer. That same 140,000 households get a 4.4% increase in after-tax income, equating to around $269,364.
The middle-income earners get a boost with McCain too, although much smaller. They’ll receive a 0.7% increase, or $584.
And the low-income families, well, McCain does offer them some relief. But not much. Around a 0.2% increase in after-tax income, or a whopping $21.
What does this mean?
Politically, McCain is doing what Bush and Reagan did before him. It’s the trickle-down effect. You give the super-rich big tax cuts, they in turn use those cuts to boost business and create jobs for the middle and lower classes.
Obama is more in another Republican’s camp – namely, Eisenhower. In 1959, the wealthy paid over 45% of their income in Federal taxes. And around 77% on estate wealth.
Personally, leaving all other political agendas aside, I’d have to vote for Obama under this plan. I would receive greater tax benefits from him than under McCain. And if you’re in a low income bracket, I’m sure you’d prefer $567 in your pocket rather than the $21 McCain is offering.
Of course, this is subject to change but the point is clear. The more money you have, the better off you’ll be under McCain. If you’re a super-rich Wisebread reader, the difference between McCain (+$269,364) and Obama (-$701,885) works out to $971,249. That’s almost $1 million dollars! With so much at stake for you in 2009, I can see why you’d vote for McCain. But is McCain trying to buy the rich vote and maintain good relations with corporate interests? That’s a story for another time.