Obama Explains Tax Cuts to Business Owner - Video

Update: Joe the Plumber, McCain's secret. 

Obama explains his tax cuts to a business owner who's not in the mood for higher taxes.

Obama's Middle Class Tax Cuts

Art at Obamaartreport.com

Update 8-15: if you make more than $250,000, see this post for taxes on capital gains and dividends. 

This is written by Jason Furman and Austan Goolsbee, economic policy director and senior economic adviser at Obama for America.

WSJ: Both candidates for president have proposed tax plans. But they are starkly different in their approaches and their economic impact. Sen. Obama is focused on cutting taxes for middle-class families and small businesses, and investing in key areas like health, innovation and education. He would do this while cutting unnecessary spending, paying for his proposals and bringing down the budget deficit.

In contrast, John McCain offers what would essentially be a third Bush term, with his economic speeches outlining $3.4 trillion of tax cuts over 10 years beyond what President Bush has already proposed and geared even more to high-income earners. The McCain plan would lead to deficits the likes of which we have never seen in this country. It would take money from the middle class and from future generations so that the wealthy can live better today.

Sen. Obama believes a focus on the middle class is appropriate in the wake of the first economic expansion on record where the typical family's income fell by almost $1,000. The Obama plan would cut taxes for 95% of workers and their families with a tax cut of $500 for workers or $1,000 for working couples. In addition, Sen. Obama is proposing tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth. Read it all.

More about Obama's tax redistribution. 

McCain Tax Lies Fact Check Video

Here's more:

MSNBC: But when it comes to promises, it's worth pointing out that, according to the non-partisan Tax Policy Center's analysis of both candidates' proposed plans, Obama would cut taxes for those making in the range of $38,000 to $66,000 three to almost eight times more than McCain would.

Under Obama's plan, according to the center, by 2009, those making $37,595 would see an average increase in their income of 3.6%, or a tax cut of $892; those making an average of $66,354 would see an increase in their income of 2.4%, or a tax cut of $1,042.

Here's a side by side comparison.

New Details On Obama's Tax Plan

It appears the only people who will be affected are those who make more than $200,000.

CNN: Indeed, under Obama's tax plan, married couples with at least $250,000 in gross income are likely to see their taxes go up if Obama is elected president.

But what about single filers? The line for them would likely be about $200,000, according to an Obama adviser.
......

Obama would restore the top two income tax rates to their pre-2001 levels of 36% and 39.6%. Currently they're 33% and 35%.

Obama's proposal would also reinstate some limitations on how much of a given deduction or personal exemption high-income taxpayers may take.

However, not everyone in the top two brackets would necessarily be affected by the rate increase. Much depends on whether they've been subject to the Alternative Minimum Tax (AMT) in the past.
.....
In addition to wages up to $102,000 - the current cap on salary subject to the payroll tax, which funds Social Security - Obama would also tax amounts over $250,000.

In other words, income between $102,000 and $250,000 would be protected. more

Obama's Tax Plan Cuts for 95% of Workers

repeat after obama: my tax plan cuts taxes for 95% of workers. those who make more than $250k will be taxed more and maybe they won't be able to buy as much stuff as they usually do, but maybe those with the tax break will be able to afford more.

really, i can't find one decent argument, given the choice of a break for those who make less than $250 vs. a break for those who make more than $250k, the choice seems clear. increasing taxes on those who make more than $250k seems like the proper rebalance.