Obama wins on Taxes

[tdotlocs]

He has to really drill this home over the next couple of months...



MCCAIN OBAMA
Income Avg. tax bill Avg. tax bill
Over $2.9M -$269,364 +$701,885
$603K and up -$45,361 +$115,974
$227K-$603K -$7,871 +$12
$161K-$227K -$4,380 -$2,789
$112K-$161K -$2,614 -$2,204
$66K-$112K -$1,009 -$1,290
$38K-$66K -$319 -$1,042
$19K-$38K -$113 -$892
Under $19K -$19 -$567

http://money.cnn.com/2008/06/11/news/economy/candidates_taxproposals_tpc/?postversion=2008061113

The campaigns respond

Jason Furman, a newly appointed senior economic adviser to Obama, said his preliminary response is that the report's findings bear out what Obama's campaign has been saying: that he's for the middle class.

"Middle-class families get tax cuts that are three times larger from Obama than from McCain," Furman said. "And the McCain plan gives nearly one-quarter of its benefits to households making more than $2.8 million annually - the top 0.1%."

Douglas Holtz-Eakin, senior economic adviser to McCain, noted that the report does not take into account the spending reforms - such as eliminating earmarks - that are central to McCain's strategy to support tax relief and help reduce the deficit.

One of the center's co-directors, William Gale, conceded in a conference call that "if McCain succeeds (in achieving his proposed spending cuts), the fiscal cost of his plan does go down."

But spending cuts can be politically difficult to achieve, said Len Burman, the Tax Policy Center's director.


The Question - McCain WHERE AND WHAT R U GOING TO CUT?????

 

[QueEx]

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Great points Tdot. Here's an assist - (the numbers may be easier to read in the frame):

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[drunkard]

thank you. great post

 

[Greed]

This thread is the perfect example of BGOL politics.

This thread was made by the preacher for the choir.

Can someone explain to me how each individual poster only added one line of their own words per post, yet everyone is in complete agreement that "Obama wins on taxes?"

 

[drunkard]

dawg if you want us to tell you the republicans are gonna win: ask me to jump. and i'll tell you how high?

 

[QueEx]

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[Makeherhappy]

Again, I look at McCain's tax plan. I like that a whole lot more than Obama's. But neither would get me vote.

 

[QueEx]

This thread is the perfect example of BGOL politics.

This thread was made by the preacher for the choir.

Can someone explain to me how each individual poster only added one line of their own words per post, yet everyone is in complete agreement that "Obama wins on taxes?"

Why didn't you add some lines to show how the subjec of the thread, is untrue ???

QueEx

 

[Greed]

Because i viewed that as the least important part of this thread, and instead spoke on the part I think is the real detriment.

 

[silkyblue]

Just Remember they both ok'ed the bailout, So much for Obama thinking about mainstreet! He's about the dollar just like McCain!

 

[thoughtone]

dawg if you want us to tell you the republicans are gonna win: ask me to jump. and i'll tell you how high?

Greed has issues with facts.

 

[thoughtone]

Just Remember they both ok'ed the bailout, So much for Obama thinking about mainstreet! He's about the dollar just like McCain!

You are right on there but the alternative is not acceptable.

 

[Greed]

America Has a Highly Progressive Tax System

http://www.bgol.us/board/showpost.php?p=5034403&postcount=10

 

[QueEx]

Re: America Has a Highly Progressive Tax System

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[QueEx]

Re: America Has a Highly Progressive Tax System

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[nittie]

Re: America Has a Highly Progressive Tax System

There is no right or wrong with taxing. Lower taxes on one group means higher taxes on another. Rich people will win every time because they are rich, it won't hurt them one way or the other. The question is over taxation and how is the money spent, we just spent 2 trillion tax payer dollars bailing out banks and insurance companies. No one is being held accountable for the fuck up. Tax payers should be pissed off, screaming for blood.

 

[Greed]

My Personal Work Incentives

My Personal Work Incentives
Sunday, October 26, 2008

Here is a question that you may have been thinking about: How do the different candidates' tax plans affect Greg Mankiw's incentive to work?

Okay, you probably haven't been thinking about this. But I have, because, after all, I am Greg Mankiw. And if you are here reading my blog, maybe you have some interest in the random thoughts running through my brain. So bear with me.

Let me start with my personal situation: I am a pretty lucky guy. I have a comfortable, upper middle class life style that includes one house, two cars, three kids, a wife, and a dog. I am fortunate enough that I don't have trouble keeping that going. I am also fortunate enough that I don't crave much more than I already have. I don't particularly want to own multiple houses or drive a Ferrari or wear Armani suits. You might say that I am close to being sated.

On a regular basis, I am offered opportunities to make some extra money. It could be giving a talk, writing an article, editing a journal, and so on. What incentive is there to put forward that extra work effort?

To a large extent, the beneficiaries of that extra effort are my kids. My lifestyle is, as a first approximation, invariant to my income. But if I make an extra few dollars today, I will leave more to my kids when I move on. I won't leave them enough so they can lead lives of leisure, but perhaps I will leave them enough so they won't have to struggle too much to afford a downpayment on their houses or to send their own kids to college.

Now back to the McCain and Obama tax plans. Here is a neat summary from the Wall Street Journal:


Let me try to put each tax plan into a single number. Let's suppose Greg Mankiw takes on an incremental job today and earns a dollar. How much, as a result, will he leave his kids in T years?

The answer depends on four tax rates. First, I pay the combined income and payroll tax on the dollar earned. Second, I pay the corporate tax rate while the money is invested in a firm. Third, I pay the dividend and capital gains rate as I receive that return. And fourth, I pay the estate tax when I leave what has accumulated to my kids.

Let t1 be the combined income and payroll tax rate, t2 be the corporate tax rate, t3 be the dividend and capital gains tax rate, and t4 be the estate tax rate. And let r be the before-tax rate of return on corporate capital. Then one dollar I earn today will yield my kids:

(1-t1){[1+r(1-t2)(1-t3)]^T}(1-t4).

For my illustrative calculations, let me take r to be 10 percent and my remaining life expectancy T to be 35 years.

If there were no taxes, so t1=t2=t3=t4=0, then $1 earned today would yield my kids $28. That is simply the miracle of compounding.

Under the McCain plan, t1=.35, t2=.25, t3=.15, and t4=.15. In this case, a dollar earned today yields my kids $4.81. That is, even under the low-tax McCain plan, my incentive to work is cut by 83 percent compared to the situation without taxes.

Under the Obama plan, t1=.43, t2=.35, t3=.2, and t4=.45. In this case, a dollar earned today yields my kids $1.85. That is, Obama's proposed tax hikes reduce my incentive to work by 62 percent compared to the McCain plan and by 93 percent compared to the no-tax scenario. In a sense, putting the various pieces of the tax system together, I would be facing a marginal tax rate of 93 percent.

The bottom line: If you are one of those people out there trying to induce me to do some work for you, there is a good chance I will turn you down. And the likelihood will go up after President Obama puts his tax plan in place. I expect to spend more time playing with my kids. They will be poorer when they grow up, but perhaps they will have a few more happy memories.

http://gregmankiw.blogspot.com/2008/10/blog-post.html