Clay Buster
Never a dull moment
Let's take this one by one.
This is true. He says he would restore the top two income tax rates to their pre-2001 levels of 36 percent and 39.6 percent. (Currently, they're 33 percent and 35 percent.)
But this of course does not lead to a higher unemployment rate. Actually, if you compare unemployment rates from when the tax rate was 39%, you'll find there were more people working then than there are now with these lower tax rates in place.
When Bush took office in 2000 the unemployment rate was hovering around 4%.
He enacted his first tax cut in mid 2001. By the end of 2001 the unemployment rate was 5.7%.
By early 2003 the unemployment rate had climbed into the low 6% range and stayed there for half the year.
Bush enacted the second tax cut in mid 2003. By the end of 2003 the unemployment rate was still right at 6%.
Fast forward to 2008 and the unemployment rate for August of this year was 6.1%
Kind of makes you long for those 4% unemployment rates which were in place for most of the 90's.
http://research.stlouisfed.org/fred2/data/UNRATE.txt
I'm not really sure what you mean by 52.2% and I'm going to presume that was a typo. The current payroll tax in place is 6.2% on all incomes up to $102,000.00 a year. (12.4% total with half going to employer and half going to employee)
This means if I make $102,000.00, I must pay a 6.2% payroll tax on 100% of my income. (This bracket includes 97% of all working households)
If I currently make $250,000.00 a year or more I only have to pay a payroll tax on less than 50% of my earnings.
Obama's plan wants to keep the 6.2% on income up to $102,000.00 and he does not want to raise it on anyone who makes above that but below $250,000.00. (Once again, this won't impact the majority of working households.)
But he would like to apply that 6.2% to all income above the $250,000.00 mark as well. These dollars would be used to shore up Social Security which at its current rate will be obsolete in no time.
I guess I just don't understand why it is OK that someone who makes $100,000.00 a year should pay 6.2% payroll tax on 100% of their income, yet someone who makes over $250,000.00 pays on less than 50%.
Obama: Payroll tax on incomes above $250,000 - Decision '08 - MSNBC.com
This is an area in which I do not agree with Obama. History has taught us that when you raise the capital gains tax the government actually brings in less dollars.
While he is once again only implementing this on people and businesses which make more than $250,000 (a very small portion of the population), I still disagree with it.
I don't have the link, but I recall Charlie Gibson really grilling Obama on this point in a past interview.
First, McCain and Obama both believe it should not revert to its pre-2001 level as it is required to do in 2010; in addition they both believe the tax should not be fully repealed. (They understand it brings in too much money to the government.)
Obama wants to freeze the estate tax at its 2009 levels (45%) with estate value cutoff at $3.5M for individuals and $7M for married couples. By exempting everything under $7M, 99.7% of all estates would not be taxed.
McCain differs in that he would like to put in place a 15% estate tax with a $10M exemption. This also will only affect a very small percentage of the population.
The estate tax: McCain vs. Obama - Aug. 6, 2008
Once again, all of these programs only affect people making more than $250,000.00 a year.
In all fairness, if you are one of the top 1% of income earners in the US then I can understand why Obama is not your candidate. I will be the first to admit it, he is going to raise taxes on that top 1%.
A recent report by the Citizens for Tax Justice states that if Obama's payroll tax plan had been in place in 2007, only 1.1% of taxpayers would have been affected by it.
If you'll visit this link:
http://www.ctj.org/pdf/obamasocsec20080707.pdf
You can read the whole report.
Like I stated, I understand that people vote with their pocket books and if I was in the 1.1% of the wealthiest in the country I would be voting McCain as well.
But the belief that Obama's tax policy will have a dramatic affect on most of working America is simply not true.
This is true. He says he would restore the top two income tax rates to their pre-2001 levels of 36 percent and 39.6 percent. (Currently, they're 33 percent and 35 percent.)
But this of course does not lead to a higher unemployment rate. Actually, if you compare unemployment rates from when the tax rate was 39%, you'll find there were more people working then than there are now with these lower tax rates in place.
When Bush took office in 2000 the unemployment rate was hovering around 4%.
He enacted his first tax cut in mid 2001. By the end of 2001 the unemployment rate was 5.7%.
By early 2003 the unemployment rate had climbed into the low 6% range and stayed there for half the year.
Bush enacted the second tax cut in mid 2003. By the end of 2003 the unemployment rate was still right at 6%.
Fast forward to 2008 and the unemployment rate for August of this year was 6.1%
Kind of makes you long for those 4% unemployment rates which were in place for most of the 90's.
http://research.stlouisfed.org/fred2/data/UNRATE.txt
I'm not really sure what you mean by 52.2% and I'm going to presume that was a typo. The current payroll tax in place is 6.2% on all incomes up to $102,000.00 a year. (12.4% total with half going to employer and half going to employee)
This means if I make $102,000.00, I must pay a 6.2% payroll tax on 100% of my income. (This bracket includes 97% of all working households)
If I currently make $250,000.00 a year or more I only have to pay a payroll tax on less than 50% of my earnings.
Obama's plan wants to keep the 6.2% on income up to $102,000.00 and he does not want to raise it on anyone who makes above that but below $250,000.00. (Once again, this won't impact the majority of working households.)
But he would like to apply that 6.2% to all income above the $250,000.00 mark as well. These dollars would be used to shore up Social Security which at its current rate will be obsolete in no time.
I guess I just don't understand why it is OK that someone who makes $100,000.00 a year should pay 6.2% payroll tax on 100% of their income, yet someone who makes over $250,000.00 pays on less than 50%.
Obama: Payroll tax on incomes above $250,000 - Decision '08 - MSNBC.com
This is an area in which I do not agree with Obama. History has taught us that when you raise the capital gains tax the government actually brings in less dollars.
While he is once again only implementing this on people and businesses which make more than $250,000 (a very small portion of the population), I still disagree with it.
I don't have the link, but I recall Charlie Gibson really grilling Obama on this point in a past interview.
First, McCain and Obama both believe it should not revert to its pre-2001 level as it is required to do in 2010; in addition they both believe the tax should not be fully repealed. (They understand it brings in too much money to the government.)
Obama wants to freeze the estate tax at its 2009 levels (45%) with estate value cutoff at $3.5M for individuals and $7M for married couples. By exempting everything under $7M, 99.7% of all estates would not be taxed.
McCain differs in that he would like to put in place a 15% estate tax with a $10M exemption. This also will only affect a very small percentage of the population.
The estate tax: McCain vs. Obama - Aug. 6, 2008
Once again, all of these programs only affect people making more than $250,000.00 a year.
In all fairness, if you are one of the top 1% of income earners in the US then I can understand why Obama is not your candidate. I will be the first to admit it, he is going to raise taxes on that top 1%.
A recent report by the Citizens for Tax Justice states that if Obama's payroll tax plan had been in place in 2007, only 1.1% of taxpayers would have been affected by it.
If you'll visit this link:
http://www.ctj.org/pdf/obamasocsec20080707.pdf
You can read the whole report.
Like I stated, I understand that people vote with their pocket books and if I was in the 1.1% of the wealthiest in the country I would be voting McCain as well.
But the belief that Obama's tax policy will have a dramatic affect on most of working America is simply not true.
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