McCain's & Obama's Tax Cut Plans - KTVN Channel 2 - Reno Tahoe News Weather, Video -

McCain's & Obama's Tax Cut Plans

Posted:
Linda Hosmer
Channel 2 News

Two men with two tax plans, each one aiming to sway your vote in their favor.

"Politicians buy votes in two basic ways. They buy them through tax cuts and they buy them through extra public services," said UNR economics professor Mark Pingle.

But our tremendous budget deficit, now in the hundreds of billions of dollars, definitely makes achieving either goal, a trying task.

Yet both candidates are proposing tax cut plans.

"The idea is when you cut taxes you give an incentive for people to work more," said Pingle.

This means more money ends up in the government's pocket in order to pay for the services many of us use.

But how will each candidate's plan affect you?

Well according to the non-partisan Tax Policy Center, 60 percent of taxpayers make about $66,000 or less a year.

Under McCain's plan, you'd see anywhere from a 0.2% to 0.7% tax cut, which means you'd save anwhere from $19 to $319 dollars a year.

Under Obama's plan, tax cuts would range from 2.4% to 5.5%.  You'd save between about $570.00 dollars up to $1,042.00.

But what if you're somewhere in the middle, which means you're making anywhere from $66,000 all the way up to $227,000.

"I think McCain and Obama will do about the same for the middle grouping but what you'll get in exchange is more debt on the backs of our children," said Pingle.

Now for the top tier earners.  Under McCain's plan, those earning between $227,000 or more will see the biggest tax cuts.

But under Obama's plan, the wealthiest Americans will either see no change or higher taxes, to the tune of more than $700,000 a year.

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