Subscribe to erollover.com Blog by EmailObama and McCain Tax Proposals
by Mike Rowan, eRollover.com
I have watched over the past couple of months as Republicans and Democrats alike have argued about their economic and tax plans. This economy, and the behavior of the stock market, has every voter worried about their way of life moving forward. Although I believe that this recession will be behind us before we know it, every investor will be receiving their 401k, 403b, or other Retirement statements, and will be very concerned as they see substantial losses in their plans.
Taxes play an important role in the structure and health of our economy. I strongly believe that raising any sort of taxes during an economic downturn could be extremely harmful based on historic precedent. Just look at Herbert Hoover raising taxes in the late 20's and early 30's. What followed was the worst period of economic activity in American history.
I really do not want to present a biased view, however I would like to lay out Barack Obama and John McCain's tax plans side by side for comparison purposes. In searching the web, and doing research on taxation, I found out the following:
Redistribution of Wealth?
According to a new analysis by the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution, Democrat Barack Obama and Republican John McCain are both proposing tax plans that would result in cuts for most American families. Obama's plan gives the biggest cuts to those who make the least, while McCain would give the largest cuts to the very wealthy. For the approximately 147,000 families that make up the top 0.1 percent of the income scale, the difference between the two plans is stark. While McCain offers a $269,364 tax cut, Obama would raise their taxes, on average, by $701,885 - a difference of nearly $1 million.
It is quite evident that Obama's tax plan is much more punitive on the rich. However, upon more detailed analysis, Obama is actually going to give the 40% of American's that do not pay income taxes a check from the government. Is that welfare in disguise or redistribution of wealth? That is up to you to decide. McCain claims that by not taxing the rich even more, this will lead to the creation of new jobs by way of trickle down economics. This seemed to work during the Kennedy, Reagan, and Bush administrations. However, I will leave that open for individual interpretation.
I will say one thing though. Obama originally said that only people making 250k or more would be taxed. Then it was down to 200k. Joe Biden came on TV this week and said that it wouldn't affect people making 140k or less. I don't make that much money, but since Obama has a history of raising taxes across the board, it has me concerned. At bare minimum, even if the "Bush Tax cuts are repealed", this is in essence raising taxes across the board 3-5%. If you make 50k that is $2500. You do the math.
Thanks to the Washington Post for the Graphics and snippet! Make sure you get out there and vote!!!
Please visit our site for more Retirement, 401k, and Insurance information:www.erollover.com
Subscribe to erollover.com Blog by Email
Obama and McCain Tax Proposals
by Mike Rowan, eRollover.com
I have watched over the past couple of months as Republicans and Democrats alike have argued about their economic and tax plans. This economy, and the behavior of the stock market, has every voter worried about their way of life moving forward. Although I believe that this recession will be behind us before we know it, every investor will be receiving their 401k, 403b, or other Retirement statements, and will be very concerned as they see substantial losses in their plans.
Taxes play an important role in the structure and health of our economy. I strongly believe that raising any sort of taxes during an economic downturn could be extremely harmful based on historic precedent. Just look at Herbert Hoover raising taxes in the late 20's and early 30's. What followed was the worst period of economic activity in American history.
I really do not want to present a biased view, however I would like to lay out Barack Obama and John McCain's tax plans side by side for comparison purposes. In searching the web, and doing research on taxation, I found out the following:
Redistribution of Wealth?
According to a new analysis by the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution, Democrat Barack Obama and Republican John McCain are both proposing tax plans that would result in cuts for most American families. Obama's plan gives the biggest cuts to those who make the least, while McCain would give the largest cuts to the very wealthy. For the approximately 147,000 families that make up the top 0.1 percent of the income scale, the difference between the two plans is stark. While McCain offers a $269,364 tax cut, Obama would raise their taxes, on average, by $701,885 - a difference of nearly $1 million.
It is quite evident that Obama's tax plan is much more punitive on the rich. However, upon more detailed analysis, Obama is actually going to give the 40% of American's that do not pay income taxes a check from the government. Is that welfare in disguise or redistribution of wealth? That is up to you to decide. McCain claims that by not taxing the rich even more, this will lead to the creation of new jobs by way of trickle down economics. This seemed to work during the Kennedy, Reagan, and Bush administrations. However, I will leave that open for individual interpretation.
I will say one thing though. Obama originally said that only people making 250k or more would be taxed. Then it was down to 200k. Joe Biden came on TV this week and said that it wouldn't affect people making 140k or less. I don't make that much money, but since Obama has a history of raising taxes across the board, it has me concerned. At bare minimum, even if the "Bush Tax cuts are repealed", this is in essence raising taxes across the board 3-5%. If you make 50k that is $2500. You do the math.
Thanks to the Washington Post for the Graphics and snippet! Make sure you get out there and vote!!!
Please visit our site for more Retirement, 401k, and Insurance information:
www.erollover.com
