Oct 31 2008

Taxing Credulity

Category: election 2008,McCain,Obama,taxesharmonicminer @ 9:16 am

Not exactly a scintillating read, but a  sober summary of the candidates’ positions and differences on taxation. The first few graphs: (much more, with supporting charts and text, at the link)

Either Republican Senator John McCain or Dem­ocratic Senator Barack Obama will have to make very important decisions on tax policy when he takes office in January 2009. First, the U.S. econ­omy will be recovering from the financial crisis and is already predicted to grow less than its usual rate of 3.3 percent over the last 50 years.[1] Second, Pres­ident George W. Bush’s tax cuts will expire in 2011, and the President must decide how to extend or make permanent some of the tax cut provisions.

Senator McCain will make the Bush tax cuts per­manent, with the exception of the estate tax. McCain credited the Bush tax cuts with helping the economy recover after the 2001 recession.

Senator Obama, on the other hand, will extend the Bush tax cuts only for those taxpayers who earn less than $250,000 a year—he has deemed the rest of the people “rich.” Senator Obama will also enact new tax increases on these rich individuals as well as a series of targeted tax credits for lower-income indi­viduals. Senator Obama believes that the current tax system is not progressive enough and that higher taxes on the rich should be used to give money to low-income individuals or those who do not work at all, such as retired people, reduce the deficit, and reduce the size of Social Security’s shortfall.

In other words, Obama isn’t planning merely to return to the higher taxes under Clinton for “the rich”, he plans to tax them even MORE than Clinton’s Democrat congress voted in 1993, when Clinton “discovered” that he couldn’t keep his campaign pledge to lower taxes for the middle class after all. One can’t help but wonder if Obama will discover that “the rich” are those making more than $50K-$70K per year, when his staff really crunches the numbers.

Those windmills are going to be expensive.

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