$7,000 deduction or $4,000 credit, which would take?

September 6, 2008 | Vetting explained

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Last updated: September 6, 2008

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McCain on the very surface appears to outdo Obama's aid to college families. McCain's proposal... $7,000 deduction. Obama just a $4,000 tax credit.

Don't be deceived however. Obama's credit is a dollar for dollar reduction in your taxes. McCain's will save the average family income $1,760.

A tax deduction reduces your taxable income. If you are a lower income family, you will get the same deduction, but because your tax percentage is 15%, you will save on average $1,050, not $4,000 like with Obama.

Because the wealthy pay a higher percentage, they save more with a deduction. The same deduction for the top 5% of Americans would save them $2,350.

Obama's plan requires 100 hours of community service, but will save low income families nearly $3,000 and middle income over $2,000 over the McCain proposal!

Do the math. Obama '08

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