Readers have expressed a regular interest in who's getting a tax cut under the presidential candidates' plans. Senator Obama has promised that 95% of us will see a reduction in our taxes. he said it two ways in the debate last Friday at Ole Miss:
(1) ...in [McCain's] tax plan, you would have CEOs of Fortune 500 companies getting an average of $700,000 in reduced taxes, while leaving 100 million Americans out.
So my attitude is, we've got to grow the economy from the bottom up. What I've called for is a tax cut for 95 percent of working families, 95 percent.
(2) ...My definition [of rich] -- here's what I can tell the American people: 95 percent of you will get a tax cut. And if you make less than $250,000, less than a quarter-million dollars a year, then you will not see one dime's worth of tax increase [Senator Barack Obama, presidential debate, University of Mississippi, 2008.09.26].
PolitiFact.com checked the first version of the statement a couple weeks ago and ruled it flat True. But when he reiterated the point, Senator Obama Palin'ed out and got excited with his pronouns, rendering the 95% claim only Half True. If we're talking you—i.e., us—only 81% of all of us will see reduced taxes.
81%.
And rich CEOs will still not share in those tax breaks. Oh, the travesty.
Stop spending money!
ReplyDeleteDoesn't it frighten you that our children will inherit overwhelming debt because the leaders of our gov't can't figure out that you can't spend more money than you have.
McCain or Obama will conspire with the next Congress to sink our country into debt.
Republicans lie. Democrats fib.
ReplyDeleteGovernment spending is a prairie fire. Obama has one cup of water to put it out. McCain has two cups.
Congress has only matches.
You still have not clarified one iota how Obama plans to give 95% of working families a tax cut, or how he plans to give 81% of us a tax cut. Don't get that one either BTW.
ReplyDeleteThere are 40% or so of people who pay no taxes now. How are they going to get a tax cut? If Obama is going to give them additional money without their paying any federal income tax, this is NOT a tax cut for them, it's another give-away.
Can I send you my increased tax bill when Obama comes calling for more of my dollars to fund his give-away programs, because believe me, he will. He has to. There is no way he is going to fund all of his dream programs and the Global Poverty Act without doing so. The US is broke BTW, aka no money, busted.
What scares me is that Obama's tax increase on PEOPLE who make over $250,000 are going to be the ones that take the tax hit. Fine, but small business can file under the personal income tax table. Small businesses do not need to be taxed more!
ReplyDeleteAnon 7:53: Hang on -- just clarify for me: is your point simply that 95% or 81% won't actually get a tax cut, since a large minority of individuals already enjoy enough deductions to zero out their income tax obligation? Are you just questioning the language, or are you worried there are some bigger numbers that don't add up?
ReplyDeleteI'll try to make it simple. Say there are 100 people, all working. 40% don't pay any federal income taxes (illegal, don't make enuf money to pay federal income tax, single moms or dads getting earned income tax credit, whatever). That leaves only 60 people paying federal income tax.
ReplyDeleteBut Obama says he is going to give 95% of working families, or even using the 81% figure you quote (that I still don't understand BTW), that means he would be giving 95, or 81, of those 100 people a tax cut. That's clearly impossible because only 60 of those people are actually paying any federal income taxes.
So is he planning on giving back more money to those people who already pay no taxes? That is NOT a tax cut. It's another federal give-away program, which is in essence income redistribution. And I don't care if Biden calls it by another name of "fairness," it is what it is. It is income redistribution.
If he is giving money back to people to make up for their payroll contribution to SS, that is NOT a tax cut either. Unless, of course, Obama thinks some people shouldn't be responsible to fund their own SS.
There is no way Obama can squeeze money from a broke treasury to fund all his dream programs, unless he plays the class warfare game he is so good at and targets the higher middle class.
First off, Anon, get off the illegals... John McCain wanted to give them amnesty, didn't he?
ReplyDeleteOn 95%, 81%, 40%... I still don't see what's your beef. One moment, you seem to be saying you're mad because a bunch of people aren't really going to get more money, then the next moment you grumble that a bunch of people are going to get money under that old Red-baiting bugaboo, redistribution (something that happens in every society on the planet).
Are you saying we should raise taxes on middle- and lower-income workers? Are you saying we should go after that 40% who pay nothing and raid their blue-collar paychecks to cover the $700 billion bailout? Are you just as unhappy about the two-thirds of corporations that pay no income tax?
And how do you feel about the income redistribution of McCain's economic plan, which redistributes income from future generations, our kids and grandkids, via growing deficits to cover more tax breaks for today's rich folks?
Cory, you evidently can't do it because maybe Obama can't do it, give 95% of working families or taxpayers tax cuts. You still have not answered my question, you simply got upset with me. All I'm saying is that his numbers do not add up, period. A good sound bite but he can't do it when only 30%(I heard thsi morning it's 30%, not 40%) don't pay taxes.
ReplyDeleteYou asked, "Are you saying we should raise taxes on middle- and lower-income workers?" I'm saying OBama will have to; he can't give back to a bigger percentage than are paying taxes. It's impossible. We can't go after those who don't pay taxes to repay this bailout, but Obama cannot include them in the tax cuts when they don't pay taxes.
And corporations don't pay taxes anyway; they just pass them on to you and me.
You are playing the classic class warfare strategy that Obama uses in your last paragraph.
Again, I am asking simply that you explain how Obama can promise 95% of us will get tax cuts. Because I can't see it.
Maybe Obama meant to say that 95 percent of the people will not see a tax increase. I seem to remember the words "Not one single dime more." In that case, the 95 percent figure can make mathematical sense.
ReplyDeleteWhat I don't see is how Obama (or anyone else) can hope to pull off a tax cut for that many people in the long term when the government has committed $700,000,000,000 to an economic rescue plan.
In addition, Obama wants to start up a number of brand new programs that will carry hefty price tags. I doubt that all of this can be paid for by the 5 percent of people at the top of the economic heap.
No, Obama continually says 95% will see a tax cut. Baloney. Just google "Obama's 95% tax cut" and see what the NY Times and others say. It is impossible, it is a give-away freebie to those who pay no or little taxes, but it does make a good sound bite and those who don't think past a few sound bites, and those who are always on the lookout for more freebies from the gov't will buy it and vote for Obama. Trouble is the rest of us are stuck with paying for his big lie.
ReplyDeleteWell, if he's lying (or merely fibbing), it will catch up with him fast if he is elected. As we have seen during the last couple of weeks, the American taxpayer is sick of being ripped off. Obama's honeymoon may be short.
ReplyDelete