Wednesday, October 15, 2008

McCain plans new tax cut for millionaires

McCain flip-flopped back and forth last weekend about a new economic proposal before finally settling on The Pension and Family Security Plan. Part of his plan proposes cutting the tax rate on long term capital gains and dividends to 7.5 percent in 2009 and 2010. The current tax rate for these capital gains is 15 percent.

Who benefits the most from his plan? Wealthy millionaires like buddies Dick DeVos and George Bush. From the Wonk Room:
Today, the non-partisan Tax Policy Center (TPC) released an analysis showing who would benefit from this cut. Like the rest of McCain’s tax cuts, this one overwhelmingly aids the wealthy, with two-thirds of the benefit going to those making over $1 million:
In 2009, under a plan that lowers taxes on both gains and dividends, those making $1 million or more would get two-thirds of the benefit, and an average tax cut of more than $72,000. Those making less than $50,000 would get, on average, nothing. [emphasis mine]
And according to Jared Bernstein:
The average tax savings for the top 0.1%--income above $3 mil--is $244,000.
Besides, in what world is John McCain living? In case he hasn't noticed, the stock market has been losing value, and losses are already deductible from our taxes.

Jared Bernstein summed it up best: "This isn't a recipe for helping families hurt by the financial crisis and recession. It's a recipe for more income inequality."

(Cross-posted at Blogging for MI.)


Lew Scannon said...

But someday, if John McCain wins the election, Joe the plumber will be able to buy his boss's business and fall into that millionaire category too. So what if he's taxed at a higher rate now?

Kathy said...

Lew, Joe the plumber's ambitions were a bit premature. He'd better concentrate on getting that license first!