I am struck by the stark difference between the two Presidential candidates and the affect their tax plans would have on the average middle class working family. I think this is one of the funamental issues of the campaign.
Barrack Obama wants to raise the tax rate on the very rich. This all sounds well and good, but people forget that the wealthiest 10% of this country pay 2/3 of the taxes despite owning barely 90% of the assets in this country. Estates above $3.5 million dollars would be taxed at 45% under the Obama plan while estates valued above $5,000,000 would only be taxed at a reasonable 15% under the McCain plan. Our next generation of old money depends on not raising the estate tax.
When it comes to the corporations that drive this country like Walmart, Exxon, and Countrywide Obama would leave the corporate tax rate at 35% while McCain would drop it to 25%. This means higher dividends for Americans who are shareholders.
Both Obama and McCain would keep Bush’s tax cuts for the middle class, but McCain would also keep the ones for the wealthy. Obama would include a $500 per worker credit for people making less than $150,000 a year and a $4,000 credit for each child in college. Seniors making less than $50,000 would be exempt from income tax under Obama.
McCain meanwhile will tax employee contributions to healthcare which are now untaxed. However, every family would get a $5,000 credit for health care. That seems an exorbinant ammount for one family’s health care today, but if we have the money I saw go for it.
Obama has a huge tax hike planned for those hard working Americans making $250,000 per year. Their tax rate would increase from 35% back to the pre-Bush level of 39%. I don’t think anybody in this economy wants to go back to the upper class poverty of the Clinton administration where Bentleys were often seen abandonned on blocks and the truffle market had severely dried up.
A middle class doctor making $300,000 will find himself severely overtaxed by the Obama system and may be forced to take a second job. I suppose it may be better for people with smaller incomes, but what about those of us who are middle class?