Obama economic advisers Jason Furman and Austan Goolsbee promised: “The Obama plan would cut taxes for 95% of workers and their families with a tax cut of $500 for workers or $1,000 for working couples” on top of “tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.” IBD (Aug. 2008)
Posted by Tina
The presidential candidates were sparring again today over Barack Obamas tax plan.
John McCain: “At least in Europe, the Socialist leaders who so admire my opponent are upfront about their objectives,” McCain said in a radio address. “They use real numbers and honest language. And we should demand equal candor from Sen. Obama. Raising taxes on some in order to give checks to others is not a tax cut; it’s just another government giveaway.”
Barack Obama: “…John McCain is so out of touch with the struggles you are facing that he must be the first politician in history to call a tax cut for working people ‘welfare'” *** “The only ‘welfare’ in this campaign is John McCain’s plan to give another $200 billion in tax cuts to the wealthiest corporations in America — including $4 billion in tax breaks to big oil companies that ran up record profits under George Bush.”
Let me ask you this: Who is more likely to provide you with both a job and affordable products and services, large and small businesses or individuals at the low end of the income spectrum? In today’s economy the answer to this question is significant to our shared chances for future prosperity.
Which of these two groups is likely to effectively use the extra money to grow our economy and create prosperity and stability? Before you answer let me remind you that many of those included in the 95% figure already pay no income tax and in most cases arealready eligable for other government programs, but will receive governemnt checks called tax cuts under the Obama plan.
McCain is correct. Much of Obamas talk is disingenuous and misleading and his tax plan is a plan that takes money from producers to give in some cases, as a gift, to non-producers. If Obama wants to do that he should at least be honest about it.
Just for fun, here’s another comparison:
Tax plan face off: Obama vs. McCain, by Abdon M. Pallasch Chicago Sun Times
* The Tax Policy Center notes seniors could end up paying more if corporations respond to Obama’s proposed increase in the corporate tax rate by passing those costs along to consumers. *** McCain would make permanent most of the tax cuts President Bush has already enacted, including those that benefit the middle class, such as elimination of the marriage penalty and the increase in child credits. He would also keep cuts that benefit the wealthy, such as the elimination of the highest tax brackets. Obama would keep the breaks for the middle class but not the ones for the wealthy. *** McCain would also double the dependent exemption from $3,500 to $7,000, benefitting big families of all incomes. *** Obama started his campaign saying his plans would not increase taxes for people earning less than $250,000. But he found himself in an apparent contradiction by saying he would tax all income to fund Social Security, not just income up to $102,000, as is now the case. So now, Obama’s plan calls for no Social Security tax on income between $102,000 and $250,000, but all income above $250,000 would be taxed for Social Security. *** The 95 percent-plus of the American population that earns less than $250,000 would see the following tax breaks: A $500-per-worker tax credit for people who earn less than $150,000 and do not itemize, and a $4,000 credit per child in college. Seniors who earn less than $50,000 would pay no income tax. *
How would these plans change behaviors? What incentive is there for high wage earners to continue to work hard and produce? What incentive is there for the small business owner, who pays tax from his business profits on his personal return, to expand his business or even produce more than the minimum to stay in business? What incentive is there for corporations to relocate their people back to America…how many more might choose to leave America? When those who make more than $250K are asked to pay SS taxes on every dime they earn there is a lot of motivation to look for alternatives, to seek solutions that woulod result in a smaller tax burden.
From my perspective there is little incentive to work hard, produce, and grow the economy under the Obama plan. His plan will give certain people good reason to vote for him and will put a few extra dollars in their pockets but that is something many could do by looking for better work, getting a higher level of education or training, or by continuing to benefit from investment dividends if Obama left them alone.(Obama intends to tax them at higher rates.)
Americans have a responsibility to take care of their own needs. Governments responsibility is to ensure that the rights to life, liberty, and the pursuit of happiness are not hindered or undermined. It should be governments intention to honor private property rights…wages are property. Weve come a long way from those founding ideals. The time has come to create a more responsible tax policy, a simplified policy that supports our economy and honors individual rights. In this regard Obama is a choice in the wrong direction; honesty is not too much to ask.