Obama promises tax cuts for middle class, increase for the wealthy

Sen. Barack Obama’s tax plan would cut taxes to rates that are lower than those seen under Ronald Reagan, according to Jason Furman, the Obama for America Economic Policy Director. He and others held a conference call to discuss Obama’s tax plan, and to dispel any myths that they feel were spread by Sen. John McCain’s campaign.

Furman went on to say that taxes on middle class families would be significantly cut, with the overall tax rate brought down to less than 18 percent of our nations Gross Domestic Product (GDP). In addition, he said Obama would supplement these cuts by ending the war in Iraq responsibly and cut subsidies to Medicare HMOs. Furman also said that any family earning below $250,000 annually can expect no tax increases under an Obama administration, while McCain cannot say the same thing. He said that McCain’s plan, for the first time in history, would force Americans to pay taxes on health insurance they receive from employers. Furman said this would result in a $3.6 trillion tax increase on middle class Americans.

Austan Goolsbee, Chief Economic Advisor for Obama for America said that the top one percent of households would see their taxes go from 21 percent to less than 25 percent. In addition, Goolsbee said that Obama would lower taxes on dividends and capital gains.

Former Treasury Secretary Larry Summers points out that while the McCain campaign and Conservatives in Washington have said that a Democratic tax plan would cause a recession, he points to the tax plan of the early 1990’s under President Clinton. This plan was followed by the largest economic boom our nation has ever seen.