How will your taxes be affected by McCain and Obama?
An article from CNN Money shows the breakdown of the average increase/decrease for the various income brackets.
In a nutshell: McCain wants to cut taxes for everyone. Obama wants to cut taxes for the majority of the people and only raise taxes for the highest income earners.
The numbers on the tables show that if you make between $66K and $161K, you would not see much difference between McCain’s and Obama’s plans. If you are in the $161K – $227K bracket, you are paying slightly more taxes under Obama’s plan. But if you are in the $227K+ bracket, you will be paying significantly more taxes under Obama’s plan.
However, if you are on the bottom of the income bracket table, making under $66K, you will see more tax savings under Obama’s plan.
I would think a majority of the people in U.S. would fall in the $38K – $112K brackets. If you take the average tax savings of those two brackets, you would get a tax savings of $1,048 under McCain’s plan and $1,191 under Obama’s plan, a difference of about $114. It looks like that most people will have roughly the same amount of tax savings in either administration.
The tax savings are more significant for the people on the top and bottom of the tax brackets. For the lower income earners, they would fare better with Obama for taxes; for the higher income earners they would fare much better with McCain.