Issues

Tax Relief

Obama's tax plan will provide "well over $1,000 in tax relief" for middle class families

According to Barack Obama's campaign website:

The typical middle class family will receive well over $1,000 in tax relief under the Obama plan, and will pay tax rates that are 20% lower than they faced under President Reagan. According to the Tax Policy Center, the Obama plan provides three times as much tax relief for middle class families as the McCain plan. [BarackObama.com, accessed 10/7/08]

Tax Policy Center figures show Obama will provide more tax relief to middle class Americans

The Tax Policy Center has analyzed both Barack Obama and John McCain's tax plans and has found that Obama's plan provides far more money for the middle class.  A two-earner family with two children making $35,000 a year would see their taxes drop by $481 under McCain's plan but by $1,429 under Obama's plan.  A single mom with one child making $50,000 a year would receive a $647 tax cut from Senator Obama but only a $361 tax cut from Senator McCain. [Tax Policy Center, Tables T08-0210 and T08-0211, 8/25/08]

McCain's tax plan would "primarily benefit" the rich; Obama would provide "much larger tax breaks" to regular Americans

The Tax Policy Center also wrote that "The two candidates' plans would have sharply different distributional effects. Senator McCain's tax cuts would primarily benefit those with very high incomes, almost all of whom would receive large tax cuts...." ["A Preliminary Analysis of the 2008 Presidential Candidates' Tax Plans (Full Report)," Tax Policy Center, 6/20/08]

In marked contrast, Senator Obama offers much larger tax breaks to low- and middle-income taxpayers and would increase taxes on high-income taxpayers. The largest tax cuts, as a share of income, would go to those at the bottom of the income distribution, while taxpayers with the highest income would see their taxes rise. ["A Preliminary Analysis of the 2008 Presidential Candidates' Tax Plans (Full Report)," Tax Policy Center, 6/20/08]

Over 100 million families would not benefit from McCain's tax proposals

The Tax Foundation found that over 100 million "tax units," or families, would not benefit from McCain's tax plan. [The Tax Foundation website, 8/14/08]

McCain's tax plan would give $3.8 billion tax break to five largest US oil companies

According to the Center For American Progress Action Fund, McCain's plan to cut corporate taxes by 10% would give the five largest oil companies in the U.S. tax breaks totally $3.8 billion. [Center For American Progress Action Fund, 3/27/08]

McCain's plan would give Exxon/Mobil, which reported $40.61 billion in profits for 2007 (or $78,000 per minute), a $1.2 billion tax break. [Center For American Progress Action Fund, 3/27/08; CNNMoney.com, 2/1/08]

Obama will cut taxes for "start-up and small businesses"

According to Barack Obama's website, he will "eliminate all capital gains taxes on start-up and small businesses to encourage innovation and job creation. Obama and Biden will also support small business owners by providing a $500 "Making Work Pay" tax credit to almost every worker in America. Self-employed small business owners pay both the employee and the employer side of the payroll tax, and this measure will reduce the burdens of this double taxation." [BarackObama.com, accessed 10/7/08]

McCain has repeatedly favored companies that ship job overseas

Supported giving tax breaks to companies that ship jobs overseas in 2005

In 2005, McCain opposed the Dorgan amendment to SCR 18, which would have eliminated tax benefits for U.S. companies that ship jobs overseas. [SA 210 to SCR 18, Vote #63, 3/17/05]

Supported giving government contracts to companies that outsourced American jobs

In 2004, McCain opposed the Dodd amendment to S 1637, which banned the government from outsourcing jobs to contractors not working in the U.S.  The amendment also banned companies which have outsourced jobs from receiving government contracts. [SA 2660 to S 1637, Vote #32, 3/4/04]

Opposed making US companies pay taxes on repatriated income

In 2004, McCain voted against an amendment to S 1637 which would have required US multinational companies to pay taxes on income earned from goods produced overseas and sold in the U.S. [SA 3110 to S 1637, Vote #83, 5/5/04]

Opposed eliminating offshore tax havens

In 1995, McCain opposed eliminating offshore tax havens for companies doing business in the U.S. [SA 2977 to S 1357, Vote #517, 10/26/95]