Report Criticizes Problems in Obama Tax Relief for Senior Citizens
August 22, 2008
An economic analysis of Barack Obama's tax relief plan for senior citizens finds that it would create an "income tax cliff" that would be excessive and unfair to many over 65.
In Tax Foundation Fiscal Fact No. 140, "Obama's Income Tax Cliff for Senior Citizens," Tax Foundation analyst Mark Robyn examines the presumptive Democratic presidential nominee's pitch to eliminate all income taxation for senior citizens making less than $50,000 per year, and finds that Obama's plan does not address the question of what happens when income crosses above that threshold.
Update: Following the release of our report, Obama advisers announced that the proposal will now include a "phase-out" with a cost of $2 billion, expanding the benefit to seniors making more than $50,000. See the updated news release here.