BARACK Obama's tax plans had become a key issue in the presidential election even before the senator's celebrated encounter with Ohio's Joe the Plumber.
Centrepiece to the Democrat's promise of "change" is what amounts to a wealth transfer from the rich to everyone else that reverses years of tax cuts by the Bush administration.
Mr Obama's plan is to ramp up taxes for the top 5 per cent of the co
untry, enabling those lower down to get a rebate of $1,000 or more.
Independent analysis indicates that the sums balance out, but for the wealthier Americans it will mean a significant blow: one estimate reckons that someone earning $9 million a year will lose an additional $800,000 in taxes under Mr Obama.
Democrats defend the rise by saying that $500,000 of this bill is the result of a reversal of the Bush administration's tax cuts that, they say, have benefited the very wealthy.
But Mr Obama's own campaign admits that 184,000 small businesses stand to lose as well. The trigger is pulled for anyone earning $200,000, and they will face an extra 3 per cent tax for any earnings above this amount.
Earlier this week, Arizona senator John McCain unveiled a wave of tax cuts on items including child allowances, pensions, unemployment benefit, businesses and shareholder profits, all of which he says he will pay for by cutting wasteful Federal spending.
Critics say neither campaign has confronted the twin problems of the need to service a record national debt, and the likelihood that the expected recession will increase social security pay-outs, while decreasing the amount of tax revenue.
Obama hits"Now, Senator McCain talks a lot about earmarks (elimination of pork barrel spending]. That's one of the centrepieces of his campaign. Earmarks account for 0.5 per cent of the total federal budget. It's not going to solve the problem."
"What the American people can't afford, though, is four more years of failed economic policies. And what they deserve over the next four weeks is that we talk about what's most pressing to them: the economic crisis."
"You have been a vigorous supporter of President Bush. You have shown commendable independence on torture but when it comes to the economic policy you are proposing eight more years of the same thing."
McCain hits"You were going to put him (Joe the Plumber) on a higher tax bracket which was going to increase his taxes, which was going to cause him not to be able to employ people, when Joe is trying to realise the American dream."
"The whole premise behind Senator Obama's plans are class warfare, let's spread the wealth around."
"Senator Obama, I am not president Bush. I'm going to give a new direction to this economy in this country."
"Congressman John Lewis, an American hero, made allegations that Sarah Palin and I were somehow associated with the worst chapter in American history, segregation, deaths of children in church bombings. That was so hurtful. And, Senator Obama, you didn't repudiate those remarks."
