A closer look at the Obama and McCain tax plans for the reveals that it is not just the “rich” taxpayers earning more than $200,000 that would face higher rates under Obama than under McCain’s tax proposal.
The reason for this is simple: McCain expands the exemptions families can take under both the regular and alternative minimum tax schedules. Obama offers nothing new to this group. Our analysis shows that for an Adjusted Gross Income (AGI) of $50,000 or more, a household would face a higher rate under Obama’s tax plan than under McCain’s. That is hardly a “rich” household. Adjusted Gross Income is the pre-exemptions and deductions income reported on tax forms, and many middle class households would have AGI of at least $50,000.
Obama claims that most households would get a break under his tax plan, while none but the rich would get a break under McCain’s plan. Somehow the lower tax burden created by McCain’s expansion of exemptions doesn’t count in Obama’s world.