Quote:
Originally Posted by RJF
Raise taxes and kill the economy....nice plan for the future.
Explain to me exactly what he is going to do?
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INCOME TAX
Overall Strategy
OBAMA: progressive taxation, tax poor/middle classes less and upper class more, stop wasting billions in Iraq
MCCAIN: flat taxation - leave tax cuts for upper class, then eventually move towards taxing all taxpayers at same rate, keep wasting billions in Iraq
Drac: Progressive taxation is simply more reasonable than flat taxation. Obama's plan will generate more tax revenue and support a more equitable distribution of wealth. McCain's revenue reducing tax policy contrasts with his promise to stay in Iraq as long as he's willing to produce intelligence which states there are a few people running around Iraq calling themselves al Qaeda. How can he reconcile these dogmatic approaches? Obamas plan just makes more sense (not that it is the perfect plan, just that it's better than McCains which isnt saying much at all).
Specifics:
under $75k
OBAMA: cut taxes
MCAIN: same
Drac: cutting taxes for those who's taxes represent the highest % of disposable income currently makes better sense than not doing so. Positively effects millions of lives while not costing the gov't much revenue.
$75k-$250k
OBAMA: same
MCCAIN: same
Drac: candidates agree
$250k+
OBAMA: raise by 3%
MCCAIN: same
Drac: raising more tax revenue by raising the tax rate on the wealthiest 1% of americans by 3% is a good idea.
SENIOR CITIZENS <$50k
OBAMA: eliminate taxes
MCCAIN: same
Drac: Drac: eliminating taxes for the elderly frees up their money and takes financial burden from families who have to support their aging relatives.
PAYROLL TAX
OBAMA: eliminate cap for those making over $250k per year, provide $500/$1000 credits to reduce payroll tax liability
MCCAIN: same
Drac: raising the cap will have negative consequences on the people making over $250k (about 1% of workers), but it will increase tax revenue. this is necessary to provide the tax credits to effectively lower payroll tax liability of most americans.
CAPITAL GAINS TAX
OBAMA: 20%
MCCAIN: 15%
Drac: We are currently on the left side of the laffer curve, and studies show raising capital gains tax to 20% would increase revenue without discouraging investment. Ignoring this is a bad idea, especially given McCain's desire to continue wasteful spending while siumultaneosly reducing tax revenue, particularly the wasteful Iraq war he seeks to prolong indefinitely. By raising the tax back to 20% some studies estimate that an additional $100 billion in revenue could be generated for the federal government without reducing investment.
SPENDING CUTS
While Obama and McCain both propose their fair share of spending cuts, and Obama has more spending planned than McCain domestically, these facts are overshadowed because McCain wants to continue spending billions on the Iraq war and wishes to increase military spending to continue expanding the war on terror. As far as offering a balanced approach to budgeting Obama is clearly the more desirable candidate.