Posted on 09/20/2008 7:11:31 AM PDT by MrChips
I just watched a CNN "comparison" of taxes. They flashed a bunch of false numbers on the screen which essentially implied that Obama would cut taxes for the middle class, raise them only on the rich. Standard stuff. But, I am not an economist. It's all I can do to balance my checkbook. Can anyone out there clarify the tax issue in a simple way? We all know that Obama will raise taxes in a big way. But is the best way to refute the two most commonly heard Obama lines?
(1) I'll cut takes for 95% of all Americans
(2) I'll raise taxes only on those making more than $250,000
Well, what I have read is that in regards to #1 above, Obama will only propose a one-time tax "credit" os $500 for all. It is not a reduction in marginal rates in any way. Therefore, it does nothing to spur saving and investment.
And, what I have read with regard to #2 above, is that, first of all, such a soak-the-rich increase will also affect hundreds of thousands of small businesses, S-Corporations which file and are treated as individual taxpayers.
Yes, I know that he will raise taxes in every way possible, from payroll taxes to capital gains taxes (there goes my teacher's retirement). But, what is the best way to counter the two simple lines above? Or, have I already done so. Economics-minded people please chime in.
Only 40% of Americans pay taxes at all.
In 1992 a young Democrat campaigned on promising a broad middle class tax cut. He immediately instituted the largest middle class tax hike in U.S. history. The same is true for Obama. He has no true intention of cutting taxes on the middle class. His promises create huge increases in the budget deficit, which his tax hikes don’t even remotely cover. The implication is that he will have to raise taxes more than he is saying.
The first statement is patently impossible since 40% of Americans don’t pay any federal income taxes already. It is IMPOSSIBLE to cut taxes on any more than 60 percent of the population even if the tax rates were cut across the board.
http://www.taxfoundation.org/research/show/1410.html
During 2006, Tax Foundation economists estimate that roughly 43.4 million tax returns, representing 91 million individuals, will face a zero or negative tax liability. That’s out of a total of 136 million federal tax returns that will be filed. Adding to this figure the 15 million households and individuals who file no tax return at all, roughly 121 million Americans—or 41 percent of the U.S. population—will be completely outside the federal income tax system in 2006.1 This total includes those who pay no tax, and those who pay some tax upfront and are later refunded the full amount of the tax paid or more
CNN lie? Never(chortle, snort)
I don’t know the numbers, cut the Clinton tax increase on the rich hit the middle class as well. In the fine print of these “tax cuts” are phased out deductions, higher means tests to qualify for deductions, etc that end up costing the middle class more, not less.
It’s only 40% that pay taxes. 60% do not pay income taxes.
Thank you. I hadn’t thought of that. And it is a good comeback.
The bottom line is this pinko can’t pay for all his socialist garbage policies without raising taxes through the roof. He can sit there and say he’s going to raise taxes on only small businesses and corporations but those costs get passed right back to consumers and business owners will cut jobs. Its been proven time and time again that no group of “rich” people can ever support the rest of a nation. Eventually, the middle class takes the brunt of everything. Someone should ask him how he plans for pay for the following, by simply rolling back the Bush tax cuts for the “rich.”
Among his proposed “investments”:
• “Universal,” “guaranteed” health care.
• “Free” college tuition.
• “Universal national service” (a la Havana).
• “Universal 401(k)s” (in which the government would match contributions made by “low- and moderate-income families”).
• “Free” job training (even for criminals).
• “Wage insurance” (to supplement dislocated union workers’ old income levels).
• “Free” child care and “universal” preschool.
• More subsidized public housing.
• A fatter earned income tax credit for “working poor.”
• And even a Global Poverty Act that amounts to a Marshall Plan for the Third World, first and foremost Africa.
True. And he is sure to increase the earned income tax credit.
I remember Soc. Sec. taxes going up too.
Rescinding the Bush tax cuts will raise taxes above the $500 tax credit resulting in a net tax increase on people making as little as $42,000 a year. The Bush tax cuts lowered tax rates FOR ALL TAXPAYERS!
I had not heard about the Global Poverty Act. Geeez.
You just have to think of it in terms of positive and negative numbers.
If you pay no taxes, and get back $500, and you get another *tax cut* under an Obama administration, then you'll get back $1000 instead.
Aren't tax cuts great? They're like free money!
And let's not forget about the death tax.
Yep, with a estimated price tax of approximately $900 billion over the next several years!!!!! You can find lots of info. about it here on FR.
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