The Tax Policy Center, a nonpartisan joint project of the Brookings Institution and the Urban Institute, gives a preliminary estimate that over the next decade, McCain’s tax proposals would reduce federal revenues $3.7 trillion while Obama’s cuts would amount to $2.7 trillion.
The center said the cuts would slice roughly 10 percent and 7 percent, respectively, of the federal revenues scheduled for collection under current law. But the center’s estimate – seemingly the first nonpartisan comprehensive comparison of the plans – is incomplete because it doesn’t account for health care tax proposals or, at least in McCain’s case, consider how proposals to slash spending would offset some costs.
A crusader against wasteful spending, McCain asserts that he will veto bills that are too costly and cut the federal budget enough to make up for the costs of tax cuts and other proposals, although he has yet to show he can save enough to do it. At the same time, the Republican says that Congress must continue to fund an Iraq war that already has cost more than $500 billion.
Obama, in turn, has proposed billions of dollars in spending to create jobs and pad government programs aimed at helping the less fortunate. He has said that the money will come from ending the Iraq war, slicing tax breaks for corporations, and raising taxes on high-income earners, efforts he says are intended to shift more of the tax burden to wealthy Americans.
As the general election cycle unfolds, you can get the most up to date information regarding the impact of future tax policy on the 8-PAC Eagle.