On the rec list is an excellent diary by wmtriallawyer about how Obama handled his encounter with Joe the Plumber with true grace. I couldn't agree more with that observation. But, that's not the real story here, since any politician should do the same.
There are also numerous other diaries attacking Joe the Plumber. Honestly, I'm not sure of the point of those. We have learned from Joe himself that the premise of his question was utterly false. He's not in danger of making in excess of $250,000, so he isn't going to have to pay a higher tax rate. But, that's not the real sorry here, either - and it certainly isn't whether he's got a tax lien or whether he's distantly related to Charles Keating, Charles Manson, or some other evil dude -- because that's about Joe Worcestershire (or whatever his name is), and he isn't the real "Joe the Plumber" story. By making the guy the story -- these commenters miss that he's a distraction. One "created" to keep you from realizing that his argument is just as bogus as he is.
The real story is in the numbers -- therein lies the real truth of the story (sorry -- no colorful pictures or funny vids here, but I'll try not to let the discussion get too dry). Joe Biden has made the case that he doesn't know any "Joe the Plumbers" that make in excess of $250,000. That's a good point to make -- an important point to make -- but it still smacks of class division -- what the right calls "class warfare".
For good or ill, the American public responds to such messages from the right. They don't like the idea that the taxes might be raised on really high-earners. Sociologists ponder why this is so, and many theorize that Americans either have a false perception of where they stand on the economic ladder, or they simply imagine that they might be in that position really soon. Others suggest it's just a feeling that taxes -- all taxes -- are unfair and un-American. Either way, I think Americans can respond to a dose of hypothetical reality -- a reality check on Obama's actual proposals.
The real story is the answer Obama tried to give to Joe. Let's say that Joe did make as much as $270,000. As Obama noted, he'd be paying an additional 3% marginal tax. That's 3% on the excess $20,000 -- not the entire $270,000. Therefore, his additional tax would be...(patience while the magic adding machine does it's thing)....(Voila!)... $600. If he made as much as $300,000, his additional tax liability under Obama would be a 'crushing' $1,500.
Would anyone decline the opportunity to earn an additional $50,000, because a tax hike would raise their tax liability an additional $1,500 -- from a tax of $18,000 on that excess income to a tax of $19,500?
It's patently absurd for "Joe", or anybody else to suggest that they are in a position to purchase a business that would earn them $300,000 annually, but that they can't or won't do it because they would have to pay as much as an additional $1,500 in taxes. The truth is that anyone in that position would barely even notice the tax hike, and it certainly wouldn't prevent a sane person from making the investment.
I realize that Obama doesn't want to publicly accuse a private citizen of being a liar, but there are ways to finesse that and still make the case that his own tax proposal will not dissuade investment. It's a case that needs to be made forcefully right now. And he can do it using Joe the Plumber to his own advantage -- to highlight the fairness of his own tax proposals and demonstrate how they are actually pro-growth.
Obama did make other salient points to Joe. The tax credit he's offering for providing health plans to employees, as well as his proposal to suspend capital gains tax collection on investments in small business -- these might mean that he might actually end up with a lower tax liability even if the investment did put him into a new tax bracket. He might also argue that his jobs creation proposal -- a tax rebate for each job created -- could also lessen the bite for those thinking about the value of new investment.
Obama should be explaining that "Joe the Plumber" the guy John McCain is talking about -- not the unlicensed plumber in Ohio who doesn't make anything close to $250,000 and faces a tax lien -- but the fictional, "real" Joe the Plumber -- the one who might be investing in the future economy...he has no reason to fear Obama's tax proposal. So long as he's creating jobs, providing health care for his employees, he won't even have to worry about a tax hike. And, if he doesn't do any of that, he will pay a little more in taxes -- but, the emphasis needs to be "a little more" -- barely noticeable for any "Joe the Plumber" but when combined with all the other Joe the Plumbers, it will help pay down our debt, invest in our infrastructure, create jobs -- thereby taking people off of medicaid and welfare -- and paying huge dividends for every "Joe the Plumber".
The McCain campaign is falsely spreading the claim that Obama's plan will mean higher taxes and fewer jobs created. The real story is that the Obama plan is laden with incentives that can only help create jobs...as well as provide health care and economic security for all Americans. Not class warfare, but the proverbial rising tide that floats all boats. That's the real "Joe the Plumber" story.
***Update***
I want to note that I understand that "Joe" lied about his circumstances. "Joe's" question was based on an utterly false premise -- and this destroys his personal credibility. It's a bogus question because he's in not in the position he claimed to be -- Indeed, I expect that no one is really thinking they won't go into business because of a fractional increase in the top marginal rate, for earnings over $250,000.
However, the question is out there. The proverbial "genie" is out of the bottle. Obama can answer it in ways that will reassure those who feel it might be a legitimate concern. That's what I've tried to show here. Voters don't care about this "Joe" guy, but they do care about the real "Joes" out there. We can address their concerns -- Obama can address their concerns -- and that's where the focus should be right now.