Senator McCain calls Senator Obama’s tax plan the largest tax increase in history. Senator Obama claims that his tax plan keeps taxes as a percent of GDP constant and reduces taxes for most people. Both are right. How can this be? A WSJ editorial explains.
So, what to make of Obama’s tax plan? Lots of economists aren’t very happy. Note that the prospects of future tax increases impacts the decisions people make today. Taxing employers is never a great idea for someone who wants to be employed.
