Paul L. Caron
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Tuesday, February 26, 2008

Calculate Your Tax Bill Under a President McCain or a President Obama

Ted Frank (American Enterprise Institute) has created this spreadhseet you can modify to calculate your tax bill under a President McCain or a President Obama.  Ted blogs that an average mid-level BigLaw associate would pay $15.048 of additional tax each year under a President Obama than under a President McCain:

Now, money isn’t everything. A BigLaw associate, who is already handsomely paid, might find it worthwhile to take the equivalent of a $34,000/year paycut to have Barack Obama as president instead of John McCain

https://taxprof.typepad.com/taxprof_blog/2008/02/calculate-your.html

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Comments

More than $15,048. The only reason the tax difference is that low is because the model assumes that the firm will reduce bonuses $5000 in response to the additional $10,000 in payroll tax, and that is perhaps a generous assumption.

David Lat will be posting a spreadsheet I developed with a more complex model that permits analysis of tax effects for single people in other states, and with the hypothetical doughnut-hole model that Obama has yet to commit to.

Posted by: Ted | Feb 26, 2008 4:45:01 PM

We all know that what people are really in favor of is raising taxes on OTHER people! Obama is counting on the fact that all of the people making less than $102,000 per year will happily go along with a plan to dramatically raise taxes on the people who make more.

Posted by: Diego | Feb 26, 2008 3:31:33 PM