Obama and his media campaign cohorts (ABC, CBS, NBC, etc.) keep touting that Obama is cutting taxes for 95% of Americans. This is an outright lie since 33% of Americans file tax returns as no-payment. These are the people who don’t pay or have credits coming back exceeding their payments.
The other little biased talking point is that McCain will keep Bush’s tax cuts for the wealthy…..well McCain’s tax plan does not have any changes from the Bush tax cuts….which did include cuts at all levels, not just the wealthy.
Obama’s plan is to take more from the taxpayers who already pay the vast majority of taxes in this country. Then for lower income levels he is offering credits out the wazoo….so that some Americans will actually have net gain of income coming FROM the government….in other words…they aren’t paying taxes….they are getting free credits/handouts from the government.
I call that Socialism….
More info on this from Newsbusters.org:
ABC reporter David Wright on Tuesday night, forced to summarize the tax plans of John McCain and Barack Obama in 30 seconds, described them through a distorted liberal prism. Though McCain wishes to continue all the income tax rates from the Bush tax cuts, with no hike or decrease for any income level, Wright asserted: “He’d make permanent the Bush tax cuts for the wealthiest Americans.” No, for all Americans.
Obama, Wright proceeded to report, “would raise taxes on the wealthy, people who make more than $250,000 a year, but cut them for most households.” The text on screen, however, stated an impossibility: “Cut taxes on most households (95%).” That 95 percent is impossible since one-third of those who file with the IRS are “non-payers,”people who end up paying no tax or get money back which exceeds their payments. Obama plans to expand the Earned Income Tax Credit (EITC) and create other credits. For those for whom the credits surpass their tax obligation, those are not tax cuts, but spending hikes or federal giveaways akin to welfare.
and summary comparison of the plans:
Excerpts from a Tax Foundation summary (PDF) of the McCain and Obama tax plans:
Continue the lower rates enacted in the 2001-03 tax cuts.
Increase the dependent exemption each year until it reaches $7,000 in 2016 (the 2016 level would be twice the level in 2009)
Phase out the AMT.
Maintain the 15% rate on capital gains and dividends.
Maintain the current 10, 15, 25, and 28 percent rates from the 2001-03 tax cuts, but allow the top two rates to expire (the 33 percent rate would rise to 36 percent; the 35 percent would rise to 39.6 percent). Eliminate all income taxation of seniors making less than $50,000 per year.
Create a new “Making Work Pay” refundable income tax credit of up to $500 per person or $1,000 per family. It would offset the payroll tax on the first $8,100 of earnings.
Create a 10 percent mortgage credit worth up to $800.
Give full-time workers making minimum wage an Earned Income Tax Credit benefit up to $555. If the workers are “responsibly supporting their children on child support,” give
those workers a benefit of $1,110.
Extend AMT patch.
Raise capital gains and dividends rates to somewhere between 20% and 28%, keeping them equal.
Filed under: 2008 Presidential election, Barack HUSSEIN Obama, George W Bush, John McCain, Politics, Progressives Ain't, Socialism, Taxes | Tagged: 2008 Election, Barack Obama, income taxes, John McCain, Media Bias, Politics, soclialism, tax credits, tax plans, taxing the rich, welfare |