- About 81% of households will owe less tax. Obama made up the 95% number.
- About 10% of households will owe more taxes, so the plan is a soak the 10% plan.
- The top fifth of income earners will pay an average 3.4% more, or about $7,727 per year more.
- Married couples filing jointly will be hit the worst.
- Obama wrote in the Wall Street Journal on 3 November that "If you work, pay taxes, and make less than $200,000, you'll get a tax cut." Untrue! Single workers making more than $80,000 will not get a tax cut. Neither will joint returns over $155,000. Liar, liar, pants on fire!
- The Making Work Pay Credit applies on income up to $8,100 and will provide as much as $500 per earner. But it phases out for income exceeding $75,000 or joint incomes exceeding $150,000. Biden was right that tax cuts apply for those with income up to $150,000, if this is joint income.
- HIS child care credit phases out as incomes rise from $30,000 to $58,000.
- HIS exemption for seniors phases out as income rises from $50,000 to $60,000.
- HIS 50% savers credit dies at $75,000.
- HIS $4,000 college tax credit phases out with family income from $100,000 to $120,000.
- A worker earning in the $30,000 to $43,000 range, loses as much as $5.17 for each additional $10 he earns, due to these tax breaks phasing out. This is not a great incentive to earn more if one now earns in this range.
07 November 2008
Reynolds: Obama's Tax Deceptions
Alan Reynolds, a senior fellow at the Cato Institute, published an article called "Obama's Tax Deceptions" in the National Review (Online) on 4 November 2008. Some of the interesting facts about Obama's "95% of workers and families will get tax breaks" plan are: