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Week of June 29, 2008 - July 5, 2008

Muddy Brooks


David Brooks made an important mistake in his Tuesday column about Barack Obama's fund raising. He writes: "If Obama's tax plans go through, those affluent donors could wind up giving over 50 percent of their income to the federal government."

According to the non-partisan Tax Policy Center's analysis of Obama's tax plan, the correct share for the richest 1 percent of households--those with income above $600,000--is 36 percent; for the for the richest 0.1 percent, above $2.9 million, the rate would be 39 percent. Note also that since these estimates include taxes remitted by corporations, the actual tax returns that these households fill out would find them paying less than 30 percent of their income in taxes. Even with Senator Obama's proposal to raise Social Security taxes on those with earnings above $250,000, a proposal for which he has yet to specify a rate, tax liabilities of the affluent would still be far below 50 percent of their income.

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Jared Bernstein

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