Obama's Tax Threshold Going Down

[DISUNC]

The Real Problem With Obama's Tax Plan

.....To be sure, these "tax cuts" contain some sleight of hand. More than $400 billion of the money over the next 10 years would take the form of refundable tax credits paid in cash to people who already pay no federal income tax. It would be more accurate to refer to these cash outlays as cuts in payroll tax or -- even more accurately -- as transfer payments. Regardless of what the credits are called, though, they would put more money in the pockets of some American families. That sounds great in these tough economic times. Who can be against a boost to spending power and consumption?

We can. While a few of Obama's proposals may be sensible, the overall package would be bad for the economy. Unlike rate cuts for high incomes or reductions in investment taxes, most of Obama's proposed tax cuts would do little to reduce the tax penalty on work and saving. For some households, the penalty on work and saving would even increase because the new tax credits would be phased out as income rises. These proposals wouldn't deliver the economic growth that incentive-based tax cuts would.

Furthermore, there is no free lunch. Obama's middle-class tax relief would have to be paid for, either now or later. Middle-class tax cuts might make sense if they were paid for by spending cuts, but that is not Obama's plan. Like his opponent, Obama points to vague savings from reducing waste, the kind of savings that never seem to materialize. He also hopes to reap savings by accelerating our redeployment from Iraq, a project with an uncertain fiscal impact. At the same time, he proposes a wave of new spending on health-care, education, energy and infrastructure programs and declares his opposition to reforms that would reduce the growth of Social Security and other entitlement benefits. ......

http://www.washingtonpost.com/wp-dyn/content/article/2008/10/28/AR2008102802955.html

 

[gmboy95]

The Democratic vice-presidential nominee, Sen. Joe Biden may have committed another accidental truth telling this week when he told a local Scranton, Pennsylvania, television interviewer that under Sen. Barack Obama's tax proposal, no one making over $150,000 would get a tax cut. Biden's remark is the second time in recent days that the Obama campaign has lowered it's threshold for tax cuts under the proposal. Earlier this week, the campaign released an ad that said nobody making over $200,000 would get a tax cut.

Sorry, another swing and a miss!!!!......Now you are hanging your hat on a misstake in a speech, when you know he meant 250....read the plan

 

[AndyLL]

No change has been made.

If you make over 250K (family) your taxes will go up.

The threshold that you receive a cut depends on serveral factors such as children and what credits you are able to take advantage of.

Of course the posters on this thread are smart enough to realize that...

 

[gmboy95]

No change has been made.

If you make over 250K (family) your taxes will go up.

The threshold that you receive a cut depends on serveral factors such as children and what credits you are able to take advantage of.

Of course the posters on this thread are smart enough to realize that...

 

[Tigger Woods]

No change has been made.

If you make over 250K (family) your taxes will go up.

The threshold that you receive a cut depends on serveral factors such as children and what credits you are able to take advantage of.

Of course the posters on this thread are smart enough to realize that...

If you make over 200K (single) YOUR TAXES WILL GO UP. Obama originally said anyone making less than $250K will not see a rise in taxes. He has now changed his tune and is saying that any family making less than @250K will not see their taxes go up. If you're married, that's a $250K threshold for two incomes combined. If you're a successful couple, you may want to divorce if Obama is elected. You'll save a bundle.

 

[mrsv98]

"Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek."

~Barack Obama

 

[Mutiny]

Honest question here, not trying to take sides, just trying to figure out the issue before next Tuesday.

Under the Obama plan, he will repeal the top tax bracket cut moving it from 36% to 39.6%. That is clear.

My question is, what happens in 2011 when the tax cuts of 2001 and 2003 expire? There is no talk about extending them. There were cuts of 3% or more across the board there (5% for the lowest brack - under $8,000). Wouldn't all rates go up at that time? Am I missing something there?

If you figure it on a joint couple having $100,000 taxable income, using the tax schedules for 2007, they would pay about $17,850. If the tables move back to pre-2001, the 10% rate is gone, becoming 15% and the 25% bracket will move to 28%. Using the same income number, the taxes would be $19,720 (15% for the first $63,700 and 28% for the remainder). That's almost $2,000 more in taxes.

 

[Tigger Woods]

"Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek."

~Barack Obama

"I smell the smelly smell of something that smells smelly."

- Mr. Krabs from Spongebob Squarepants

 

[manning]

For the life of me, I cannot understand why a flat tax rate is a bad idea. It seems to me that if EVERYONE paid a certain percentage, it would be totally fair. People who earn only $10,000 a year would pay the same PERCENTAGE of their income as people who earn a million a year. The millionaire is paying more dollars, yet it's the same percentage. No write-offs, no progressive or sliding scales.

Hucklebee explained it on his show. The politicians will lose power. All the special breaks that they give will not be needed anymore.

 

[kirbsam]

i said it before and i will say it again. obama will raise taxes. and anyone naive enough to believe that if you make under 250 k, your taxes arent going up is fooling themselves. i am a mccain supporter, but i am not dumb, i see that obama is going to win. and i know my taxes will go up. obama is a democrat and that is what they do. we all know that. so lets move on, and discuss more important matters. like refillable mugs.

 

[crazyforgoofy]

In the end, that's what this election is about. Do we participate in a politics of cynicism or a politics of hope? ~ Barack Obama

 

[Goofyluver]

In the end, that's what this election is about. Do we participate in a politics of cynicism or a politics of hope? ~ Barack Obama

Ahhhh...that's a favorite of mine.

 

[crazyforgoofy]

Ahhhh...that's a favorite of mine.

Mine too.

 

[gmboy95]

We have been told we cannot do this by a chorus of cynics who will only grow louder and more dissonant in the weeks to come. We've been asked to pause for a reality check. We've been warned against offering the people of this nation false hope. But in the unlikely story that is America, there has never been anything false about hope. For when we have faced down impossible odds; when we've been told that we're not ready, or that we shouldn't try, or that we can't, generations of Americans have responded with a simple creed that sums up the spirit of a people. Yes we can.


Barack Obama
Speech following New Hampshire Primary January 8, 2008.

 

[corndog]

Sorry, another swing and a miss!!!!......Now you are hanging your hat on a misstake in a speech, when you know he meant 250....read the plan

Link:

http://firstread.msnbc.msn.com/archive/2008/10/28/1600845.aspx

Looks like you guys better get together and iron out your cover story!

 

[DISUNC]

In the end, that's what this election is about. Do we participate in a politics of cynicism or a politics of hope? ~ Barack Obama

In the end it's all really the politics of BS!
~ Disunc

 

[Goofyluver]

Looks like you guys better get together and iron out your cover story!

Did you read the entire article?

 

[manning]

Honest question here, not trying to take sides, just trying to figure out the issue before next Tuesday.

Under the Obama plan, he will repeal the top tax bracket cut moving it from 36% to 39.6%. That is clear.

My question is, what happens in 2011 when the tax cuts of 2001 and 2003 expire? There is no talk about extending them. There were cuts of 3% or more across the board there (5% for the lowest brack - under $8,000). Wouldn't all rates go up at that time? Am I missing something there?

If you figure it on a joint couple having $100,000 taxable income, using the tax schedules for 2007, they would pay about $17,850. If the tables move back to pre-2001, the 10% rate is gone, becoming 15% and the 25% bracket will move to 28%. Using the same income number, the taxes would be $19,720 (15% for the first $63,700 and 28% for the remainder). That's almost $2,000 more in taxes.

Also in 2011 the 10% bracket will disappear the lowest will be 15%.

 

[corndog]

Did you read the entire article?

Yes. Did you read what gmboy95 said?

 

[crazyforgoofy]

We've got a tragic history when it comes to race in this country. We've got a lot of pent-up anger and bitterness and misunderstanding. ... This country wants to move beyond these kinds of things. ~ Barack Obama