About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Robert Carroll, How Do the Presidential Candidates' Tax Plans Affect Taxpayers' Marginal Tax Rates 1 (2008)

handle is hein.taxfoundation/ffbfaxz0001 and id is 1 raw text is: FISCAL FACT October 2008 No. 150 How Do the Presidential Candidates' Tax Plans Affect Taxpayers' Marginal Tax Rates? By Robert Carroll Summary The Presidential candidates have proposed comprehensive tax plans that reshape tax policy in important ways. The two candidates have put forward two very different visions, with Senator Obama's tax plan emphasizing redistribution and Senator McCain's tax plan focusing more on economic growth. A perhaps neglected aspect of their tax plans is how they alter effective marginal tax rates, the amount of tax that people pay out of their last dollar of income. The concept of a marginal tax rate is important because it determines how much a taxpayer gets to keep when making various decisions, such as how much to work or save. High marginal tax rates can be economically harmful because some decisions may be based more on tax considerations than on economic merit. The analysis below summarizes some of the effects the candidates' tax plans would have on effective marginal tax rates. Calculations that capture the effects of changes related to both the income and payroll tax are presented for a hypothetical two-earner couple with two children. Although these calculations are for the couple depicted below, they provide a sense of how the plans would affect taxpayers' marginal tax rates in general. The major findings include: - - - - - - - - - - - - - - - - as RL M, a FOUNDATION:

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most