Obama's plan will lower taxes for people making $75,000 or less, and raise taxes for people making more than $200,000.

Obama's tax plan, as currently proposed, would provide a tax cut for people making $75,000 a year or less [1], and would not raise taxes on people with incomes of $200,000 - $250,000 a year or less [2].

In September 2007, Obama said:

"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]

And in a March 2008 interview Obama said:

"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:

"It's very clear that taxes for lower income Americans will decline under Obama." [4]

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Obama On The Issues: Taxes

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McCain On The Issues: Taxes

Get the facts at McCain Fact Check.

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[1] CNBC.com. Closing Bell March 27, 2008

[2] ABC News. Transcript: Obama and Clinton Debate April 16, 2008

[3] CNN.com. Obama's September 18, 2007, speech on middle class tax fairness September 18, 2007

[4] Dobbs, Michael. The Fact Checker. McCain vs Obama on taxes Washington Post. June 11, 2008

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Additional Resources:

OnTheIssues.org: Barack Obama on Tax Reform

Politifact.com: Dems don't propose tax increases on lower incomes