Under $250,000 is middle class: Obama
A show of hands at an Obama rally Thursday after the candidate asked who made less than $250,000. Senator Barack Obama says those middle class audience members would benefit from his plan.
Mr. Obama opposes extending President Bush's tax cuts. Instead, he proposes various tax breaks, including a $500 tax credit for each person in a household who works, a larger child care tax credit, a $4,000 tax credit each year for the first two years of college, and eliminating all income taxes for those over 65 with income less than $50,000 a year.
To reduce the deficit and inequality, he would raise the tax rate for single households with incomes of $200,000 or more and for families with incomes over $250,000. He would also raise taxes on capital gains and dividends.
For married couples with incomes of $500,000 with two children and both parents working, the Tax Policy Center found that Mr. Obama would raise income taxes by $3,363, from $110,955 now, while Mr. McCain's plans would leave taxes unchanged. Deloitte found that a $500,000-a-year couple would pay $3,100 more under Mr. Obama, with no change under Mr. McCain.
Mr. McCain also proposes giving many households a $5,000 tax credit when they buy family health insurance, which costs $12,000 nationwide on average.
U.S. / Politics
For Incomes Below $100,000, a Better Tax Break in Obama's Plan
By STEVEN GREENHOUSE
Published: October 31, 2008
John McCain would cut taxes generally on par with Barack Obama for those making $100,000 to $250,000 a year, indepeA show of hands at an Obama rally Thursday after the candidate asked who made less than $250,000. Senator Barack Obama says those audience members would benefit from his plan. ndent analyses show.