Every time I turn on cable news I hear Republican talking heads and McCain campaign officials telling folks that Barack Obama is going to raise everybody's taxes. Most of the anchors just let the claims stand without refutation. Of course what they say isn't the truth, but as we know from past elections, the truth doesn't always matter. If you repeat a statement often enough, some people are going to believe it even if it's nonsense. But it's tough to counter the McCain arguments just by saying that his statements aren't true. It is much easier to counter with actual numbers that show what kind of tax break folks will get with a President Obama, compared to a President McCain. Kossacks, let's take a look at some numbers and then all help spread the word:
Scenario 1
Here we have a married mother of two, who is dealing with child care expenses and trying to save for retirement. Making $40,000 a year with $100,000 owed on her mortgage, the bills get paid, but barely. This mother needs some tax relief. What can she expect?
Under Barack Obama: $2145.00 tax savings
Under John McCain: $680.00 tax savings
That's a difference of almost $1500.00, nearly two whole mortgage payments!
Scenario 2
Here we have a licensed plumber, making $60,000 a year, recently divorced and supporting his young son. He has already paid off his mortgage, so the bills aren't piling up, but business has slowed and he is having trouble saving for retirement. Our plumber friend has always paid his taxes in full and on time every year, and feels he should be getting some tax relief this year especially with all of the relief the rich CEOs on Wall Street are getting. What can he expect?
Under Barack Obama: $500.00
Under John McCain: $150.00
That's almost three times as much savings under Obama!
Scenario 3
Here we have Joe the Real Estate Guru, Joe has made a killing on the real estate market the last few years, and thanks to tax loopholes provided under eight years of GOP leadership in Washington, Joe was able to abandon his failed properties in this down cycle, taking writeoffs and avoiding personal guarantees on the bad mortgages, while being able to keep the good properties. Joe is making a lot of money thanks to his friends in the Republican party, while neighbors of his abandoned properties suffer as their neighborhoods decay. Despite the downturn, Joe made $500,000 last year. But Joe would still love some tax savings. What can he expect?
Under Barack Obama: unfortunately no tax cut
Under John McCain: $12,000 tax savings
There's a look at what we can all expect. No doubt Joe the Real Estate Guru will be voting for McCain. Of course not every person making $500,000 a year took advantage of tax loopholes to make money at taxpayers' expense like Joe. Many folks worked very hard and made significant earnings to show it. In this type of economic environment though, cutting taxes by large amounts on the top rate is simply irresponsible. Ronald Reagan and George W. Bush have proven that the trickle down theory of economics is a failure. What a successful economy needs is a sturdy foundation, so that success and prosperity can flow upward. No company can be successful without a strong structure, and no country can be successful without the same. Under Barack Obama, the working and middle class folks who provide our structure will get the tax relief they need to be able to stay in their homes, keep their small businesses open, and make sure their kids get a good education. Under John McCain, we will see a continuation of trickle down economics that give the rich huge tax cuts while ignoring the backbone of our country- the working and middle class. We know what happens when this is done because we are experiencing the ill effects right now. The next time someone tells you they are considering voting for John McCain because they think Barack Obama might raise their taxes, be sure to share these numbers with them.
(Source of numbers: I used a combination of Barack Obama's tax calculator at barackobama.com, and a calculator at electiontaxes.com to make sure the numbers balanced.)