As one of the authors of the cited study, I want to thank this site for publicizing our results. I would also like to clarify a key point. Senator Obama's plan would not mean "higher taxes" for everyone in the sense of raising their tax payments; indeed, his plan would reduce tax payments for moderate-income families through an array of new and expanded tax credits. As Alex Brill and I explain, though, the plan would raise marginal tax rates for many of those people; their taxes would rise more quickly as their income rose because the credits would be phased out. That would reduce their incentive to earn additional income.
Alan D. Viard, Resident Scholar American Enterprise Institute
As one of the authors of the cited study, I want to thank this site for publicizing our results. I would also like to clarify a key point. Senator Obama's plan would not mean "higher taxes" for everyone in the sense of raising their tax payments; indeed, his plan would reduce tax payments for moderate-income families through an array of new and expanded tax credits. As Alex Brill and I explain, though, the plan would raise marginal tax rates for many of those people; their taxes would rise more quickly as their income rose because the credits would be phased out. That would reduce their incentive to earn additional income.
ReplyDeleteAlan D. Viard, Resident Scholar
American Enterprise Institute