Obama envisions tax burden shift

As part of Barack Obama's drip-drip roll-out of his economic agenda, the Illinois senator today will propose a revamp of the nation's tax code that shifts more of the tax burden onto the wealthy.

Speaking at the Tax Policy Center in Washington this afternoon, Obama will propose an $80 billion to $85 billion tax cut for the middle class. Components include:

• A tax cut of up to $1,000 for 150 million people and their families
  
• A homeowner's tax credit for those who do not itemize deductions, a benefit to 10 million people, many of whom make less than $50,000, according to the campaign
  
• Eliminating the income tax for seniors who make less than $50,000, affecting about 7 million people
  
• Streamlining tax filings so many Americans could complete tax returns in less than five minutes
  

Obama says he would pay for his overhaul in part by closing corporate loopholes, cracking down on corporate overseas tax havens, and boosting the tax rate on dividends and capital gains for the top income bracket.

"When folks are hurting out there on Main Street, that's not good for Wall Street," Obama will say, according to prepared remarks. "When the changes in our economy are leaving too many people behind, the competitiveness of our country risks falling behind. When that dream of opportunity is denied to too many Americans, then ultimately that pain has a way of trickling up."

See Obama's full plan here.

Rival John Edwards recently came out with his own tax reform plan, in which he proposed some of the same fixes. See Edwards's plan here.