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How the Rich Would Fare Under Obama, McCain

There’s a lot confusing information out there about how the next president will tax the rich. But one chart boils it all down. It comes courtesy of the Tax Policy Institute and I’ve reproduced it below. It shows the average percentage change in after-tax income for various groups in 2009. The blue bar is Barack Obama and the red bar is John McCain.

Not surprisingly, Mr. Obama’s plan helps those at the bottom of the wealth ladder while Mr. McCain’s plan helps those at the top. What’s most striking, however, is the divergence in incomes for the truly wealthy — the top 1% and the top tenth of 1%.


The estate-tax differences are also stark. Both candidates plan to increase the estate-tax exemption, and would also reduce the rate as it’s now scheduled through 2010. Yet Mr. McCain would raise the exemption and lower the rate more. The impact: 8.8 thousand Americans in 2009 would file estate-tax returns under Mr. McCain, while 15.5 thousand would file under Mr. Obama’s plan. Mr. McCain’s plan would collect $4.2 billion in estate taxes, while Mr. Obama’s plan would collect $17.9 billion.

It’s unlikely either plan will be implemented as is. But one thing is clear: Mr. Obama sees taxes as a way to ease inequality, while Mr. McCain sees them as a way to encourage economic growth by helping the top.


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    • Obama is Robin Hood! Take from the rich and give to the poor!

    • I have been an Obama supporter all along due to his advanced environmental and seemingly great plans about taxes and other various issues. After a little research however I am now seeing that his tax plan is really not benefiting anyone except the poor. A true middle class family does not fall under the $75,000 income range. They are above it. This entire plan seems to be robinhood-esque. Take from the rich to give to the poor. I am looking to make a fairly substantial income in my future but am discouraged under Obama's plan because it seems as though ones hard work is punished not rewarded as we are all taught it will be from a young age. In this economic situation we cannot risk a major revamp of the system in order to benefit those at the bottom of the food chain. I believe that the time needs to be taken to look at the situation and determine what needs to be done to benefit everyone, not just those at the very bottom or very top of the line. On that note, way to go Mr.Obama and good luck with the presidency but please for the nations sake and all the families that need some relief take time to consider the ramifications of all the proposed plans.

    • I'll tell you why we need to hike the tax on the rich even higher (as it stands I think current taxes are 50-64%).

      Not because the rich benefit more from the services of Government, and not becuase the rich are piggybacking on the work of the poor.

      No, it's simple economics really.

      The dollar, which is a representation of value, backed by gold, was created to provide an efficient medium of circulation for value (in liue of barter).

      The mass aggregate wealth amongst the rich (personal wealth such as CEO paychecks) is causing circulation of value to die down (as the money basically sits in banks).

      To say that money earned is just as soon invested, is to do truth a disservice. True that money earned is invested, but on the large scale, far less money is invested as is earned.

      So the personal bank accounts of the top 10% of the richest citizens are growing, the amount earned is disproportionate to the investment.

      The consequence of these almost lewd earnings? The government must print more money to keep physical circulation of the dollar (the US currency) stable. Thus the value of all currency goes down.

      To counter this either the Rich must increase their investments significantly (by thirty to forty percent, which is just a guesstimate) or else must GREATLY increase their charity efforts.

      Indeed, whoever said that viscous cycles may spiral upward (and not just downward)where correct in that presumption.

      On the other hand, we have the problem of outsourcing and tax havens. Companies may very well move business elsewhere should they find tax-laws unfavorable. Therefore we have the issue of balancing our taxs that, while not driving off companies from the US, will still bring in an optimal tax revenue from the top 10%.

      It is truly a conundrum. :\
      Forgive me for sounding more intelligent then I am and for being oh-so-wordy :P

      -Jim jamesfalero [at] hotmail [dot] com

    • I have an idea that seems fair to me. Repeal the 2 sets of Bush tax cuts and cut everyone’s tax by $5,000. All tax payers get the same cut, if they paid less tax, give them a rebate. I recently read an article by someone blubbering that the Bush tax cuts were unfair to the wealthy, as they thought the wealthy should get the same percentage tax break. So reset that tax base, give all tax filers the exact same $5,000.

      Speaking of unfair taxes, I have no children, but I still pay property tax to support schools. I’m done with higher education, why does my state still tax me? I drive well below the usual amount, why do I have to pay for roads? I do not fly, but I have to pay for the control of the airspace.

    • Why doesn't American understand- when you lower taxes, you allow for economic growth. It's been proven time and time again in history. And that doesn't mean a disproportionate lowering; it means equality no matter what the class. Not only that but we all SHOULD know that when bureaucrats and big government takes over,especially by trying to mete out who should get what, disaster incurs. Most people can handle their money better on their own than the government. Remember the Soviet Union - it crashed under a government built such as this. Get ready, because the CHANGE people voted for isn't going to be what they thought.

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