First Hard Numbers on Obama Tax Plan Show Dramatic Tax Redistribution
Source: The Tax Foundation

Senator Obama’s tax plan is a dramatic redistribution of the nation’s tax burden, according to a new Tax Foundation analysis.

In Tax Foundation Fiscal Fact, No. 132, Tax Foundation president Scott Hodge uses revenue estimates from the Tax Policy Center to show that Obama’s plan would greatly accelerate the decades-long trend toward a federal government that depends for tax revenue almost exclusively on a few high-income people.

This contrasts starkly with the McCain plan, according to Hodge, which would give every taxpayer a cut and leave the current tax burden distribution approximately where it is.

“Under the Obama plan for 2009,” explains Hodge, “more than $131 billion would be redistributed from the top 1 percent of taxpayers to all other taxpayers.”

As a result, the top 1 percent of households would pay more federal taxes of all kinds than the bottom 80 percent of households. That lopsided distribution under Obama does include payroll taxes and other federal taxes, but it excludes the new payroll tax hike that Obama plans to levy on people making more than $250,000 because details about that plan are currently unclear.

“In other words,” says Hodge, “it is at this point a cautious estimate to say that in 2009, under Obama’s plan, 1.13 million Americans would pay more in all federal taxes than 128 million of their fellow citizens combined.”

+ Hard Numbers on Obama’s Redistribution Plan

This entry was posted on Friday, June 27th, 2008 at 11:12 pm and is filed under Election 2008, Taxation. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.