October 23, 2008
Will Obama Raise Taxes or Lower Them?
Will Obama raise my taxes? I don’t know, and neither do you. Believe me, I’ve tried to figure it out. I’ve read his plan, as well as McCain’s. I’ve read the analysis of both campaigns. I’ve watched all 4 debates. I’ve even read the neutral analysis of the Brookings Institution Tax Policy Center. Any objective analysis points to the fact that taxes will be lower under McCain than Obama, but how much and for whom is an unknowable. Both campaigns have proposed so many convoluted strategies that it is next to impossible to determine the net effect for an individual taxpayer.
Here’s what I do know:
1) Obama plans to raise the top 2 marginal tax rates. This is his personal version of Robin Hoodness, or in his words, an attempt to “spread the wealth around.” High marginal tax rates are a staple of Liberal/Socialist policy, and Obama is no exception.
2) Obama plans to raise taxes on capital gains and dividends. He intends to make these rates graduated, like ordinary income taxes, so high income individuals would pay a higher marginal capital gains rate of 20%.
3) Obama plans to raise tax rates and reduce tax loopholes on “large” (think public) businesses.
4) Obama plans to raise death tax rates to 45% on estates larger than $3.5 million.
5) Obama plans to freeze income tax rates for other income levels, and cut taxes through targeted tax credits for various activities.
6) Obama supports changing the FICA tax limits (currently capped at $102,000), so higher income individuals would pay higher FICA as well as higher income, cap gains, and dividends. (read more…)
