President-Elect Obama's Tax and Stimulus Plans

Publication Date: January 2009

Publisher: Tax Policy Center

Author(s): Roberton Williams

Research Area: Banking and finance

Keywords: Economic Well-being; Federal Budgets & Fiscal Policy; Income and Wealth Distribution; Tax Distribution and Economic Trends

Type: Paper

Abstract:

During the presidential campaign, Barack Obama proposed a comprehensive tax plan that would raise taxes on high-income taxpayers, cut taxes for low- and middle-income households, and lose $2.9 trillion dollars of revenue over ten years. Obama will take office with the economy in sharp recession and a deteriorating fiscal situation, made worse by new spending on a bailout plan. Faced with those crises, Obama says he will pursue both his campaign tax plan and additional tax-related proposals addressing problems created by the downturn. This paper examines revenue and distributional effects of the tax plan and describes some stimulus proposals.