The graph above shows the increase or decrease in tax under each candidate's proposed plan. Percent change was used to show the actual impact, and was calculated using the bottom rung of each tax bracket (a $10k annual income was used for the $19k and under category). I have also included the change in dollars in the graph at the bottom of this blog entry.
When we look at the raw and percent change according to each candidate's tax proposals, it's clear that McCain's tax plan would give all Americans a tax cut, while Obama's would raise taxes on the very highest income groups, and and cut taxes for those in the lower brackets. However, in McCain's plan, the largest cuts will go to those with the highest incomes - and I mean HIGH. In fact, it's not until your income reaches a base of $603K that you would see McCain cutting your taxes and Obama raising them (to any real degree). That's right - everyone making under $603K/year, under both plans, would either see a miniscule increase in tax, or a cut, under both candidates plans.
At the bottom of the scale there are also large differences. Obama gives the largest percentage cuts to those with the lowest incomes, while McCain's plan follows the logic "The less you make, the less you get back".
As the median income in the US is currently $51,000/year, the average American would see a greater impact to his or her tax under Obama's plan - where, on average, tax bills would be cut to a greater degree than under McCain's plan.
That was really informative and certainly appreciated.