The Wonk Room is always looking for new and interesting studies, and luckily a paper by the non-partisan Tax Policy Center fell into our laps. The report compares the tax plans of both 2008 presidential candidates and shows precisely who will benefit under the proposals put forth by Senators Obama and McCain. Here is a chart from the report:
And here is what it means:
OBAMA’S PLANMCCAIN’S PLANIncreases (after-tax) income for poorest taxpayers 5.5%No benefit for poorest taxpayersIncreases (after-tax) income for middle taxpayersModestly increases (after tax) income for middle taxpayers Increases taxes for top richest 1% of taxpayersIncreases (after-tax) income for richest taxpayers 3.4%
Essentially, the Tax Policy Center shows what we already know — Obama’s tax plan provides the heaviest benefits to the poorest Americans — the ones who need the most help — while McCain’s heavily favors the richest. And while McCain’s plan provides only a nominal benefit to the middle class, Obama’s gives solid middle class relief.