Who's Taxing Whom?
Let's take four different families. Two working parents, two young kids.
Our first fictional family has a combined income of $35,000 a year. Under current law, that family gets a tax credit next year of $2,765, CBS News correspondent Nancy Cordes reports.
Under Sens. Barack Obama and John McCain's plans, they get even more.
That's a $4,195 credit under Obama and, even though McCain criticizes Obama for promising tax breaks to those who don't pay taxes, his plan would also boost that family's refund to $3,246.
Our next family of four makes $50,000 a year - close to the nation's median family income.
"Currently they're on the hook for $772 in taxes next year. Obama's tax plan would save them $1,000 - meaning they end up with a small credit of $232. McCain cuts their tax burden by nearly as much, leaving them with a tax credit of $51.
"That stays the same for people who make between $50 and $100,000," said Bob Williams of the Tax Policy Center.
By the time you get to a family making $150,000 a year, the Obama and McCain tax bills are nearly identical. Right now, that family pays $18,370. Under Obama, that number shrinks by about $1,000. Under McCain it shrinks by $1,200.
And then there are the top earners, at $250,000. They now pay just more than $42,000 in taxes. Obama would increase their tax burden by $600. McCain would leave it unchanged.
How do both men pay for their tax plans when they're giving bigger breaks to the middle class than they are taking for the top tier earners?
