Sunday, September 14, 2008

Obama and McCain on Taxes

Above is a graph that compare's changes in your taxes under McCain's and Obama's tax plans. It's easy to see that McCain's claim that Obama wants raise taxes on the middle class is a lie. In fact, it turns out that for a full 60% of taxpayers Obama will actually lower taxes more than McCain. Only for the very wealthy does Obama's tax plan differ sharply. Unless you make more than $600,000 a year, you won't pay any more under Obama's plan. Plus, everyone making over $2.9 million gets the same tax increase.

Two interesting things to note at about the proposed tax plans. First, Obama's tax plan isn't that progressive. He wants to roll back Bush's tax cuts and then cut for the middle class -- returning tax levels to what they were under Reagan. That's right -- the country is so conservative at this point that the progressive candidate of change wants to tax the country at Reagan levels.
Second, Alan Greenspan recently said that country can't afford McCain's proposed tax cut. See: Of course, he added that a reduction in spending -- significant cuts in programs -- could possibly make up for the deficit. This perfectly comports with my theory that the conservatives would love nothing more than to drive the country into debt, forcing it to cut valuable social programs. However, it does go right to the heart of the Republican claim that Republicans are the party of fiscal responsibility.
So can the Democrats take on the title of the fiscally responsible party? It could be time to take this phrase from the Republicans. Democrats can talk about how Republicans mortgaged American financial security with their reckless tax cuts for the uber-wealthy. We were supposed to have a surplus by now when Clinton left -- think what that money could do to help those suffering from the current economic malaise.

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