One of them -- the Democratic way -- is to look at how it would impact the population of the United States. Obama will reduce taxes to a greater extent on 75% of taxpayers. It's only on the top 1% (those making more than $600,000 per year) that Obama actually increases taxes, by about 10%.
The other way -- the Republican way -- is to look at how the tax plans would impact the people already paying taxes. The dirty secret that Democrats don't mention is that the bottom 50% don't pay much in taxes anyway. And the richest 0.1% already carry 20% of the total tax burden. So, Republican plans give the most relief to the rich.
I'm pretty centrist on this. I understand and sympathize with both sides of the argument.
However, even after Obama 's 10% increase of taxes on people making more than $600,000/year, tax rates will only rise to the level that they were in the 1990s. And that was a period of economic boom, budget surplus, low inflation and low interest rates. So, the burden on the rich is not that onerous. Plus: the economic benefits of low inflation and balanced budgets to a rich person far outweigh these additional taxes. Secondly, McCain's plan will reduce overall revenues -- you simply can't give tax cuts without providing offsetting funding and unless Social Security or Medicare are cut, there is no place in the federal budget to get the huge spending cuts needed to fund his tax cuts. Thirdly, with the economy in the doldrums, stimulation has to go to the people who'll spend it (and not to people who will invest it outside the United States)
Advantage: Obama.
It seems like there are various thresholds of comfortable living.
ReplyDeleteMy youngest sister makes so little she simply cannot absorb unexpected bills. Even a few hundred throws her off completely. I wonder sometimes if she'll ever catch up. No, she doesn't quite work to live within her means, but she is below some kind of threshold under which is it extremely difficult to live within your means and impossible to absorb life's surprises. She's decided to return to school and I hope she sticks it out so she can get a better paying job.
I, on the other hand, chose a house size/payment well below the supposed ideal 33% of household income, buy cars that are reliable and last a long time (and keep them a long time), etc. - live well under our means. But even still, we're well above that threshold that my sister is below. I could afford to pay more taxes even though I'm well under what either candidate's cutoff is.
And I actually wouldn't mind paying more taxes because I value the good and important things government does.
- Some crazy non-native Okie you know.