Will Obama's tax plan lower or raise taxes?

Obama's plan would lower taxes for people making $75,000 or less, and raise taxes for people making more than $250,000.

Obama's tax plan, as currently proposed, would provide a tax cut for people making $75,000 a year or less, and would not raise taxes on people with incomes of $200,000-$250,000 a year or less [1-3].

Obama on September 18, 2007:

I'd reward work by providing an income tax cut of up to $500 per person - or $1,000 for each working family - to offset the payroll tax that they're already paying... Under my plan, 150 million Americans - and their families - will get a tax cut. And because this credit would be greater than their income tax bill, my proposal would eliminate all income taxes for 10 million working Americans. [3]

Omama, in March 2008:

"I would not increase taxes for middle class Americans and in fact I want to provide a tax cut for people who are making $75,000 a year or less. For those folks, I want an offset on the payroll tax that would be worth as much as $1,000 for a family." [1]

Brookings economist Douglas Elmendorf on Obama's tax plan: