Monday, October 27, 2008



Obama claims that he will cut taxes for 95% of Americans. When confronted with the fact that more than 30% of Americans don't pay any income taxes (15% more very little) and that this would require checks to be sent to these people, he modified the plan to include a "work requirement," as if it makes sense to send welfare checks (paid for by someone else, against their will) to people as long as they are working. Obama's "tax calculator" ad claims to show your tax cut under his plan vs. John McCain's. It shows no tax cut under McCain's plan for anyone making less than $250,000. This is a complete falsehood, equal to the Obama's other lies like associating McCain with Hispanic slurs, cutting Medicare and cutting Social Security.

McCain's health care plan provides a big tax cut for all Americans. Obama and Biden have done their best to distort the plan, but every independent analysis of the plan has shown that it benefits 95% of Americans. The plan provides a $5,000 tax credit to everyone who wants to buy their own health plan. A tax credit is different than a deduction. If you owed $10,000 in taxes, but bought your own health plan, you would now owe $5,000. Isn't that a tax cut?

Obama says this plan will cause people to lose their employer based insurance, but that's kind of the point. Obama either doesn't understand economics or is being intentionally misleading. Your health insurance from your employer is part of your compensation. Your total compensation is based on the value of your work to your employer and the availability of workers with comparable skills. McCain's plan would encourage many people to choose to get all of their compensation in cash and then buy their own health insurance. They would get an increase in take home pay and a tax cut.

More importantly, the Bush tax cuts are set to expire in 2010. Then 100% of people that pay income tax will get a tax increase, though Obama doesn't see it that way - he considers it the end of a tax cut. Don't you see the difference. McCain would extend the Bush tax cuts and he would eliminate the Alternative Minimum Tax, which would save working families with children ensnared by the AMT an average of $2700 a year.

Obama has also proposed raising the payroll taxes for anyone making over $94,700 a year and would raise capital gains taxes from 15% to 20%, a substantial tax increase for the 50% of Americans who own stock. And let's not forget his new taxes on businesses, which will be passed down to you through higher prices.

I guess the calculator missed a few things.

No comments: