Obama’s newest tax ideas
Posted by Mike Sylvester - 10/13/08 @ 7:28 pm - Filed Under 2008 National Elections, National Politics
Mr. Obama is at it again. He is proposing another set of proposals that are intended to benefit certain Americans.
Please read this article in the Wall Street Journal.
As most of you know I do not like the fact that an ever growing number of Americans are subsidized through the Federal income tax laws. These Americans receive more from the Federal Government in the form of income tax “refunds” then they pay into the Federal Government in income taxes. In my opinion this is just another form of welfare.
Obama’s most recent proposals will do the following:
- Ensure that Americans who receive a subsidy via the Federal income tax code will actually receive a higher subsidy.
- Ensure that more Americans do not pay income tax and instead get a subsidy.
Out of the seven items listed below, the first six involve a refundable tax credit, meaning you get the money back even if you did not pay the tax in the first place.
In simplest terms, Obama’s plan will cause the poor to get more money from the Government. His plan will also cause middle classed tax payers to pay less in taxes. Lets analyze his plan:
1. Individuals will be eligible for a refundable tax credit of up to $500 (It phases entirely out if the individual makes $75,000 per year) and married couples will be eligible for a tax credit of up to $1000 (it phases entirely out if they make $150,000 per year).
2. A $4000 tax credit for college tuition. (This will help ensure that college tuition rises at the astronomical rates that college tuition has been increasing at)
3. A 10% mortgage interest tax credit. This is above and beyond the fact that mortgage interest is already deductible if you itemize your deductions. In other words, his plan encourages Americans to go even further into home debt.
4. A “savings” tax credit of 50% up to $1000.
5. An expansion of the earned income tax credit that will let single people get a larger earned income tax credit.
6. A child care tax credit of up to $3000 per year.
7. (This one is not refundable) A clean car tax credit of up to $7000 on certain cars.
Right now about 33% of American tax payers either pay no income taxes or get a subsidy from the Federal Government. Obama’s plan increases this number to 44%. In other words a lot less Americans will pay Federal income taxes.
The last paragraph of the WSJ article is amazing and you should pay particular attention to it:
“Some families with an income of $40,000 could lose up to 40 cents in vanishing credits for every additional dollar earned from working overtime or taking a new job.” In other words, this plan may encourage people to work less in order to maximize you tax credits.
Mike Sylvester
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6 Responses to “Obama’s newest tax ideas”
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Mike, any way you slice it, or any way “THE ONE” presents it, it’s income redistribution in it’s purest form. SOCIALISM.
My favorite part (sarc/on) is giving people that don’t even pay taxes a check just for the hell of it. (sarc/off)
I loved his plan today to help bail out states like California. Dahhh they where carrying a 4 billion shortfall from last year. Now we get to pick it all up.
What is interesting is what some of the states that will be helped. Fla, Pen, Ohio, Michigan, Vigina and the list goes on…. How many battle line states are there?
What is stupid is he has several billionaires and a number of millionaries on his campiagn committee. Now do you think those people have not already figured out when their taxes get increased that there will be a loophole on the other side for them to obtain tax credits. I know I am dumb but I am not that stupid.
Heck, John McCain should come out and say there will be no more income tax. Of course those on the right will say what the hell. The ones on the left will say, let us vote for him….
What should concern everyone is our policy with China. They could break this country in 24 hours if they wanted. All they would have to do it discount our dollar to 75 cents and start unloading it…
I saw this comparison this weekend.
http://www.parade.com/news/intelligence-report/archive/how-much-would-you-pay-taxes.html
I understand Obama is telling folks he is just trying to “spread the wealth around”. Don’t do it with our money, please.
Fred,
Do you honestly believe this will happen without owing more money to China? The piggybank is empty that is why we are in deep trouble now. We are printing money 24/7.
Does anyone understand that if China desires to they can destroy the US without one bullet. Just sale all the US IOUs they hold at 75 cents on the dollar and we are shot. Within minutes oil jumps 33%, all imported goods from around the world jump 33% at the wholsale level and nearly 50% at the retail level.
Americans will blame China as they quickly forget that rebate check that drove the spending of the government over the top… We just better hope everyone enjoyed that check….
J.Q.,
Understand. China is already demanding that the US Government “insure” US Treasury Securities.
Unbelievable. In many respects US Treasuries have always been insurance.
J.Q.:
You hit the spot again!
“What should concern everyone is our policy with China. They could break this country in 24 hours if they wanted. All they would have to do it discount our dollar to 75 cents and start unloading it…”
No matter who wins this election, China will dictate to them. The real danger to this country is not Sarah Palin or Obama. When China forcloses on their loans, the person in the White House will become just another Bobble-Head.
“We are printing money 24/7.” Heck J.Q., China is printing our dollars faster than we can!