debate deconstruction, part II: taxes

According to analysis by the nonpartisan Tax Policy Center, Barack Obama and John McCain are both proposing tax plans that would result in cuts for many American families. Obama's plan gives the biggest cuts to those who make the least, while McCain would give the largest cuts to the very wealthy.

The following table, created by the Washington Post, presents each tax plan in a clear and concise manner, without the political rhetoric.

(What you won't find in this table is McCain's tax hike on anyone who receives health benefits from his or her employer. Scroll down for more info... )



McCain's $5000 Refundable Tax Credit Masks Tax on Health Benefits

(The following analysis was taken from the nonpartisan FactCheck.org. If McCain's deceptive "tax credit" were to pass, he would be the first President in US history to tax health benefits.)

McCain has stated he will "give every American family a $5,000 refundable tax credit" to buy health insurance.

Sounds good. But McCain failed to mention how existing employer-sponsored health benefits would be affected.

• Workers would be taxed on the value of any employer-paid health benefits, partially offsetting the $5,000 credit for those now covered by such plans.

• Experts say a tax credit plan like this would likely cause companies to reduce or eliminate health benefits for their employees.

The aim of the McCain plan is to reduce health care costs through increased competition, by encouraging individuals to shop around for health insurance and medical care. There are many who favor such an approach, and we take no position on it one way or the other. But McCain's simplistic claim misleads voters by promising to give "every American family" a $5,000 benefit while failing to mention what he would also take away.