The Heritage Foundation’s Center for Data Analysis has just released a study of Barack Obama and John McCain’s tax plans. Using tax models and tax information from other sources as inputs into Global Insight’s U.S. Macroeconomic Model, the study estimates the side-by-side economic effects of the two plans.
The study concludes: “Each presidential candidate achieves his stated goal,with Senator McCain generating the most new jobs, growth, and additional income for individuals. Senator Obama’s plan drives up the tax rate for individuals with annual incomes above $250,000 and redistributes money to workers with lower incomes.”
Don’t believe us? Just ask Barack Obama. The New York Post reports:
The fracas over Obama’s tax plan broke out Sunday outside Toledo when Joe Wurzelbacher approached the candidate.
Wurzelbacher said he planned to become the owner of a small plumbing business that will take in more than the $250,000 amount at which Obama plans to begin raising tax rates.
“Your new tax plan is going to tax me more, isn’t it?” the blue-collar worker asked.
“It’s not that I want to punish your success,” Obama told him. “I want to make sure that everybody who is behind you, that they’ve got a chance for success, too.
Then, Obama explained his trickle-up theory of economics.
“My attitude is that if the economy’s good for folks from the bottom up, it’s gonna be good for everybody. I think when you spread the wealth around, it’s good for everybody.”