Mostly rational politics, with occasional rants about how a few crazy Republicans are ruining the country.
Support The Jaker
Friday, June 20, 2008
McCain's Tax Plan: AWFUL!
Now that the Democratic Party infighting is over, Paul Krugman is back to doing what he does best - sensible issue analysis (or at least, citing of sensible issue analysis).
This piece is on the Tax Policy Center's non-partisan analysis of McCain and Obama's tax plans. (which makes for a good skim).
CONCLUSION: McCain is just doing the Bush cuts for the rich all over again. Under his plan the top 1% earners get an avg 2.4% tax rate cut (avg. $45,361) while the lowest quintile get an avg 0.2% cut (avg. $19. yes that's right. $19). And for the top 0.1%? Avg cut of $269,364. Plus McCain wants to increase the deficit by $250bn.
Obama's plan isn't perfect (some strange features), but at least he gets the distribution right. 6% tax increase for the top 1%, 5% decrease for the lowest quintile. And Obama will reduce the deficit by $700bn.
Krugman is also right that the Republicans have basically won the tax fight. Every candidate, Dem and Rep, now has to propose a big tax cut to be viable, and trying to dial-back the ridiculous Bush tax cuts is politically tricky.