McCain’s Tax Plan Better for the Middle Class
Although you would not know it if your only source of information about Senator John McCain’s tax plan was… Senator John McCain, his tax plan will be more beneficial for the middle class than Senator Barack Obama’s plan.
“Broadly speaking, Mr McCain proposes to leave the Bush tax cuts in place. Mr Obama proposes a big increase in taxes on people earning more than $250,000 (€187,000, £145,000) a year, in order to cut taxes and increase subsidies at the bottom; for the middle, he too would mostly keep the Bush tax code. Middle-income households do come out slightly ahead under the Obama plan – but only if you leave out the effect of Mr McCain’s healthcare proposal,” Clive Crook explained for the Financial Times.
In other words, McCain’s immediate tax plans and his health care proposal would benefit the typical American household more than Obama’s – a point Senator McCain has failed to articulate clearly to either the voting public or pundocracy.
This is a major issue for voters: if you want to win, you have to let the middle class know that you are on their side. The one who convinces the middle class that he’s best for them, wins elections. It’s that simple.
McCain should have explained this to voters; they should have known by now that his plan is better for them, while relying more on the free market and less government nonetheless. He should have made this his number one campaign issue ever since he first announced his plan; even if he would not proceed to win, voters would at least have known that they would have been better off under his plan.
His failure to do so once again confirms earlier criticism that McCain may be a great senator, but a horrible campaigner.
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-->3 Responses to “McCain’s Tax Plan Better for the Middle Class”
Comment from Ken
Time October 24, 2008 at 2:44 am PDT
Grewgills,
If you give examples you should first know what you are talking about. Here’s the right math based on 2008 brackets:
Current Tax Liability for married couple making $55K = $7447.50
$16050 @ 10% = $1605
$38950 @ 15% = $5842.40
Under the McCain plan assuming health benefits worth $12K for a total income of $67000
$16050 @ 10% = $1605
$39050 @ 15% = $7357.5
$1900 @ 25% = $475
McCain propose allowance for health care = $(5000)
Total Liability = $4437.50
Comment from Grewgills
Time October 24, 2008 at 10:38 pm PDT
Sorry, I used the math from McCain’s website.
Comment from Grewgills
Time October 24, 2008 at 12:36 am PDT
Whether the McCain’s health plan actually saves you any money at all, not just relative to Obama’s plan depends on several factors. Are you are single? If so the tax credit is $2500, not $5000. Will including your health insurance as income change your tax bracket? If you are earning below 15K and are lucky enough to be provided health insurance then you will certainly be bumped up a bracket and pay 5% more on all of your income. If you are making in the high 40Ks and have a particularly good plan or if you are making in the 50Ks with an average plan you will be bumped up bracket and have to pay 10% more on all of your income.
Example
Joe and Jane together pull in $55K/yr in taxable income and have employer provided health care worth $12K. Their current tax liability is $8.25K (15% of 55K). Now under McCain’s plan their taxable income jumps to $67K, there tax bracket changes from 15% to 25%, and their new tax liability is $16.75K (25% of 67K). Joe and Jane’s federal taxes more than doubled under McCain’s plan. If Joe were single and bringing in 55K he would be even worse off.