Monday, October 27, 2008

Not Better off? Better off with Obama!

The source for this information is CNN Money.

I’ve been receiving a tirade of emails claiming that Obama’s tax plan will sink small businesses and take a major tax bite out of the income of ordinary Americans. Here is something that’s closer to the truth.

The candidates tax plans:

Source:The Tax Policy Center

McCain: Even though everyone gets a cut under the McCain plan, high-income taxpayers would benefit more than everyone else. According to CNN Money and the Tax Policy Center, the highest-income households - those with incomes of at least $603,000 - would see a boost in after-tax income of 3.4%, or more than $40,000. The McCain plan gives nearly one-quarter of its benefits to households making more than $2.8 million annually - the top 0.1% I guess that will benefit the McCains, too.

Obama: High-income taxpayers would pay more in taxes, while everyone else's tax bill would be reduced. The lowest income groups would benefit the most - in terms of reducing their taxes. Obama's plan would keep the 2001 and 2003 tax cuts in place for everyone except those making more than roughly $250,000, and he would increase the capital gains tax. (I guess Wall Street doesn’t like this, but Main Street doesn’t give a hoot.)

Under both plans, all American taxpayers could pay a price for their tax cuts: a bigger deficit. The Tax Policy Center estimates that McCain's tax proposals could increase the national debt by as much as $4.5 trillion with interest, while Obama's could add as much as $3.3 trillion if they remained intact for 10 years.

So let’s be realistic: Which tax policy would benefit the average Joe—not the plumber? Which tax plan will be better for the country? In reality, I don’t think candidates will be able to live up to their campaign promises on taxes, because the Bush/Cheney administration hasn’t been a careful steward of our economy. The next president is going to have to try and clean this mess up. I’m reminded of the bumper sticker—“we’re spending our children’s inheritance”—often seen on retirees cars. Our children and grandchildren will be paying for fifty years to correct the fiscal malfeasance of the last 8 years.

Oh, and for you fiscal conservatives out there--How do you like the recent acts of socialism by the US government? Now the taxpayer is part owner and guarantor of the financial industry. The “we the people” will have to make up for the fiscal irresponsibility of the financial industry. I hope Paulson knows what he’s doing and that he’s an honorable man, because certainly there are only a few people in this country who understand what he’s doing. By the way, none of those people are in the White House.

Also, if I remember correctly, “W” ran a few other enterprises into the ground and had to seek a bail out for those, too. It’s nice to have a rich Pappy, huh?

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