October 25, 2008

EVEN FUNNIER THAN THE PARSING...:

Fact check: Would Obama's tax rates be less than Reagan's ? (CNN, 10/24/08)

[Brian Deese, deputy economic policy director of the Obama campaign] said the campaign projects that under Obama a median-income family of four will pay an annual effective income tax rate of 4.32 percent. That number, Deese said, comes from the campaign's calculations based on projections in the nonpartisan Tax Policy Center's analysis of the candidates' tax plans.

According to Tax Policy Center historical data, a rate of 4.32 would be lower than during the Reagan years, when average rates for a median-income family of four ranged from 11.79 in 1981 to 9.30 in 1988. By comparison, rates during the Bush administration have ranged from 6.71 percent in 2001 to 5.91 last year. [...]

Deese also cites Obama's proposed capital gains rate of 20 percent for families earning over $250,000. That would be lower than the 28 percent capital gains rate Reagan signed into law in 1986. Currently the top capital gains rate for taxpayers in that income group is 15 percent, according to Williams of the Tax Policy Center. [...]

The Verdict: Misleading. While Obama says that his tax rates will be lower than under Reagan, according to his economic adviser he is referring to specific rates out of the many rates in the tax system. Also, it is not clear how many taxpayers would qualify for the lowest projected income tax rates.


...is the fact that it s W who has set the minimalist tax bar, not the Gipper, but a Democrat can hardly credit the former.

Posted by Orrin Judd at October 25, 2008 8:38 PM
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