Tax Foundation notes Obama tax clarification
To its credit, the Tax Foundation made note of the Obama campaign's rebuttal of its analysis. (See earlier post for background.) Sez a Tax Foundation press release that just landed:
The presidential campaign of Sen. Barack Obama today clarified its proposal to eliminate all income taxes for seniors making under $50,000, after a new economic analysis from the Tax Foundation criticized the plan for being nearly impossible to implement.After Foon Rhee of the Boston Globe reported Robyn’s analysis on his blog, “Political Intelligence,” the Obama campaign responded by saying that his plan does actually include a phase-out of the tax break, so that the tax bill would rise gradually above $50,000 in income and there would be no “cliff.”
Robyn welcomed the clarification from the Obama campaign, yet made clear that any phase-out would raise the marginal tax rate for some senior taxpayers.“While it is good to see that the Obama campaign shedding some light on how they would avoid an income tax ‘cliff’ on seniors,” Robyn explains, “this means that those senior taxpayers making just over $50,000 will see an increase in their marginal tax rate.”
