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1 Scott A. Hodge, Hard Numbers on Obama's Redistribution Plan 1 (2008)

handle is hein.taxfoundation/ffbdcxz0001 and id is 1 raw text is: FOUNDATION Hard Numbers on Obama's Redistribution Plan Fiscal Fact No. 132 by Scott A. Hodge June 25, 2008 The Tax Policy Center's recent analysis of the presidential tax plans has received a considerable amount of attention in the press. While much of the focus has been on how much or how little each plan benefits middle-class taxpayers, little attention has been paid to how each plan affects the overall distribution of the nation's tax burden. On this account, the plans are vastly different. Under the McCain plan, since every taxpayer gets a tax cut, the overall distribution of the federal tax burden remains roughly the same as it is today. Under the Obama plan, because some taxpayers get a tax cut and others get a substantial tax increase, the overall distribution of the federal tax burden changes quite considerably. In short, the Obama plan would redistribute more than $131 billion per year from the top 1 percent of taxpayers to all other taxpayers. In 2009, for example, Tax Policy Center figures show that after the income-shifting in the Obama plan, the top 1 percent of taxpayers would pay a greater share of the total federal tax burden than the bottom 80 percent of Americans combined. In other words, 1.13 million Americans would pay more in all federal taxes than 128 million of their fellow citizens combined. These figures do not include the impact of Obama's proposal to apply Social Security payroll taxes on incomes above $250,000. According to Tax Policy Center estimates, this plan would increase the tax burden of top earners by an additional $40 billion in 2009 alone and more than $629 billion over the next ten years. By itself, the $40 billion tax hike is twice as much as all the federal taxes paid by people in the bottom quintile combined.

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