Deficit Grows with McCain or Obama - Black Enterprise
Black Enterprise Magazine July/August 2018 Issue

The candidate’s tax plans are complicated for individuals, but according to the Tax Policy Center, a joint venture of the Urban Institute and Brookings Institution, two non-partisan organizations, the national deficit, which is already $10.2 trillion, will increase under both Sens. Barack Obama and John McCain. The deficit is tied to how much Americans pay in taxes. If taxes are low, and government spending is high then the deficit will increase. But both candidates are promising lower taxes.

McCain’s proposed tax plan would reduce revenues by $1.5 trillion over his term because he would extend President George W. Bush’s income tax cuts beyond their expiration of 2010 and reduce government spending.

Like McCain, Obama also plans to reduce government spending, but to a lesser extent. Obama would pay for his plan by increasing taxes for people making more than $250,000 a year. According to Gramlich, under Obama’s plan, the wealthiest one in 1,000 taxpayers would see an 8.8% of income decrease in wealth in 2009 and a 2.7% decrease by 2012.

McCain’s plan of action does reduce taxes for middle-class Americans, but it also increases the wealth of taxpayers with the highest incomes by 4.7% or $290,708 in 2009 and by 11.6% ($680,157) in 2012, says Jeffrey Gramlich, an accounting professor at the University of Southern State Maine. Using the data from the Tax Policy Center Gramlich created a tax calculator that voters can use to see what their tax burden will be depending on who won the election. McCain’s plan will cost the country an additional $4.2 trillion in 10 years time, but for middle-income taxpayers it still doesn’t reduce taxes as much as Obama’s plan, explains Gramlich.

The good news is that the deficit might not be as bad under Obama’s plan as it is under McCain’s.

Middle-class families might pay fewer taxes with Obama but under his plan the national deficit would still increase by $2.9 trillion.

Marcia A. Wade is a reporter at

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Marcia Wade Talbert

Marcia is a multimedia content producer focusing on technology at Black Enterprise Magazine. In this capacity she writes and assigns stories to educate readers about social media; digital integration; gadgets, apps, and software for business and professional development; minority tech startups; and careers in STEM (Science, Technology, Engineering, and Mathematics). In 2012, she received two Salute to Excellence Awards from the National Association of Black Journalists and was recognized by Blacks in Technology (BiT) as one of the Top 10 Black achievers in the tech arena for 2011 at SXSW in Austin, Texas. She has spoken about technology on panels for New York Social Media Week, at The 2012 Rainbow/PUSH Wall Street Summit, as well as at Black Enterprise’s Entrepreneurs Conference and Women of Power Summit. In 2011, chose her as one of 28 People of Color Impacting the Social Web, and through crowdsourcing she was listed as one of BlackWeb2.0's/HP's 50 Most Notable African American Tastemakers in Social Media and Technology for 2010. Since taking on the role of Tech editor in September 2010, she has conceived and produced five cover stories on Technology and/or STEM and countless articles, videos, and slideshows online. Before joining as an interactive general assignment reporter in 2008, she freelanced with Black Enterprise beginning in 2003 while working as the technical editor at Prepared Foods magazine. There she further honed her writing skills and became an authority on food ingredients, including ingredients used in food fortification and enrichment. Meanwhile, her freelancing with Black Enterprise and helped her stay current on issues pertaining to the financial and business welfare of African Americans. As a general reporter for Black Enterprise she attended and reported on the Democratic and Republican National Conventions, where she interviewed Valerie Jarrett, senior advisor and assistant to President Barack Obama and U.S. Attorney General Eric Holder. Marcia has a Bachelor of Science degree in Agriculture with an emphasis in food science from the University of Minnesota, and a Master of Science degree in journalism from Roosevelt University in Chicago. En route to her secondary degree, she served as the editor-in-chief of the Roosevelt University Torch, a weekly, student-run newspaper. An avid photographer and videographer, Marcia is one of several employees at BLACK ENTERPRISE who interned for the publishing company as a college student. She lives in New Jersey with her husband, a food scientist; her seventeen-month-old daughter; and “The Cat”, but still considers Chicago home.