The United States presidential race is entering the final stages and while most of us have probably decided who we will vote for, those of us who are still undecided might be interested in what the candidates are promising in terms of income tax changes (source: November edition of Money magazine).
Take a look:
| Household Earnings | Obama’s Plan | McCain’s Plan |
| Less than $18,981 | -$567 | -$21 |
| $18,982 to $37,595 | -$892 | -$118 |
| $37,596 to $66,354 | -$1,118 | -$325 |
| $66,355 to $111,645 | -$1,264 | -$994 |
| $111,645 to $160,972 | -$2,135 | -$2,584 |
| $160,973 to $226,918 | -$2,796 | -$4,437 |
| $226,919 to $603,402 | +$121 | -$8,159 |
| $603,403 and up | +$93,709 | -$48,682 |
Before deciding your vote based on these numbers, please keep in mind that these are just promises and estimates. Our future president (whichever candidate) will have an incredibly difficult time carrying out their proposals because of everything we will end up doing to rescue Wall Street. We can argue all day about whether we will make or lose money with the $700 bailout bill that was passed, but either way, the United States will be in serious debt (some economist predicts as much as $900 billion by next year!). It’s like trying to convince your spouse that you need to take it easy and earn less money and your family is currently getting into deeper and deeper debt!
On a lighter note, I saw something quite amusing on Amazon today. A popularity poll on Obama and McCain’s Halloween mask! (Please see screenshot taken on Oct 20, 2008 below):
Get one if you want to join the fun!
Happy voting!
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{ 8 comments… read them below or add one }
These figures are correct, IF you believe these politicians will go forward with their respective plans. I ahve my doubts.
Thank you for this excellent summary. Of course, it all depends on whether the plans go forward. It is worth pointing out that sometime (probably in my lifetime) taxes are likely going to have to be raised just to make the interest payments on the ridiculous amounts of debt that we owe.
All candidates being voted for any type of position usually promises “OVER THE TOP” promises, but it never seems to work out if he/she gets chosen.
-Mike
I believe the Dems have the incentive to do what they are promising and with Congress squarely in Obama’s corner, we will see it happen. But they will need to clean-up one enormous mess.
here is reality. This nation is in sooo much debt, and the Federal budget is in such a ludicrous deficit that it is completely irresponsible of any politician to talk of ANY tax cuts. The only responsible course of action is to increase taxes and cut programs. This budget MUST be balanced. Speding now at the expense of future generations is not only irresponsible it is immoral.
These numbers are correct but not complete. Here is an article that tells you what is missing from these numbers.
You had to jump into politics. :O)
Are those mask links affiliate? It would be fun to go as the opposite. I wonder if they can still ship in time.
Anyway, what you need to understand is Obama believes the Gov’t knows what to do with your money better than you do. I think the bail-out mess proves where that theory can go.
McCain believes you know what to do with your money better.
I don’t believe it is the Gov’ts role to redistribute wealth. If you want a certain level of income, go create it.
Are Tax cuts reasonable in this current environemnt, probably not. But neither are Tax increases. Big cuts need to be made and I’m sure there are plenty that can be found so that the budget could be balanced in 4 to 8 years and then see about cuts.
Any claims that taxes will not rise is a bold face lie. The way Mr. Obama has been spending will only lead to eventual tax increases. Plus you will see valued programs (valued to me) going bye bye, like the space program. We will be bypassed on that by China and India, among others.