Obama & Taxes: American Thinker

[Chris_]

October 27, 2008
Senator Obama's Four Tax Increases for People Earning Under $250k
By Ned Barnett

I confess.  Senator Obama's two tax promises: to limit tax increases to only those making over $250,000 a year, and to not raise taxes on 95% of "working Americans," intrigued me.  As a hard-working small business owner, over the past ten years I've earned from $50,000 to $100,000 per year.  If Senator Obama is shooting straight with us, under his presidency I could look forward to paying no additional Federal taxes -- I might even get a break -- and as I struggle to support a family and pay for two boys in college, a reliable tax freeze is nearly as welcome as further tax cuts.

However, Senator Obama's dual claims seemed implausible, especially when it came to my Federal income taxes.

CLICKY

A pretty decent article on the "loopholes" Obama uses, to justify his wording of no tax increases, when in fact he will raise them.

[MrsSmith]

Thanks for this...posted it on the other site.   

[lastparker]

Thanks from me too.... I just had to throw this at a flaming lib in an argument.

[ScubaGuy]

For a married family, filing jointly and earning $75,000 a year, this increase will be $3,074.  For those making just $50,000, this increase will be $1,512.  Despite Senator Obama's claim, even struggling American families making just $25,000 a year will see a tax increase -- they'll pay $715 more in 2010 than they did in 2007.  Across the board, when the tax cuts lapse, working Americans will see significant increases in their taxes, even if their household income is as low as $25,000.  See the tables at the end of this article.

It's going to be funny to watch what the DUmmies say when that one hits them.  They'll blame it on Bush since he was the one who lowered their rate.  If he didn't do that the big zero wouldn't have to roll it back and have them pay more. 

[NHSparky]

The only flaw in this arguement is that it doesn't really address inflation--that is, his discussion says take your 2007 income and apply it to the 2000 and 2007 tax tables.  Doesn't work obviously, because what one earned in 2000 is (hopefully) less than 2007.

However, if one says that they earned 50,000 in 2000, and index that to the rate of inflation, that should come up to about 61,900 if you go by CPI.

Using a married/joint with no kids, and no itemizing (simplicity) with a standard deduction in both years, one comes up with a taxable income of $42,650 in 2000, and $51,200 in 2007.  The federal tax paid in 2000 would have been $6397.50 and in 2007 would have been $6897.50--an actual INCREASE of $500 over the last 7 years.

However, that being said, had the Bush tax cuts not gone into effect, the actual tax paid in 2007 (and what will be in 2010) would have been $8636--$1800 more over what you paid in 2007.  That comes out to about $40 a week more in federal taxes alone--well above the $13/week "stimulus" most of you are currently seeing.

Hope and change, people--stand by.

Sources:
http://www.moneychimp.com/features/tax_brackets.htm