Obama's Tax Cut Plan??

[tripods68]

There are many debates how or should Obama's Tax Plan benefit 95% of American Workers while creating 2.5 million jobs in the next two years. These are lower and middle class like most of the members on this board.

One of Obama's plan in discussions is reducing the payroll tax, thus increasing everyone's paycheck which create a long term effect in the economy. This would be a better option personally instead of one-time check boost for the holiday. How is he going to pay all this plan when the economy in the tank and people losing their jobs? Unemployed people won't be benefit since there don't have income, but illegal aliens who are using fake/stolen TAX ID will surely benefit. A family of 4 with household making $60K or less hardly pays anymore taxes these days in you factor in many tax credits and exemptions. But he'll raise taxes on household making at least $250K plus per year. So he'll increase the taxes on the rich to benefit majority of the people on this board. (see DisneySteve Income Poll.) I have a mixed feelings on this. But what are you thoughts?

[maat55]

I think the system is completely broken. I'm against raising taxes on one income group while lowering it on another. I'm against government borrowing money from my great, great, great grandchildren to pay for anything.

[tripods68]

Originally Posted by maat55

I think the system is completely broken. I'm against raising taxes on one income group while lowering it on another. I'm against government borrowing money from my great, great, great grandchildren to pay for anything.

I totally agree. GAO has already said we (taxpayers) are in the hook for the coming decades somewhere $40 Trillions of legacy cost in Medicare and Social Security. These don't include the Iraq War and the current Bailout. So what's left? Raise taxes on the rich and hope we can our bills.

[maat55]

I kinda feel chained up in a room with a time bomb and a bunch of idiots(Congress) are scrambling around doing anything but working on the bomb.

[Gjowers]

The income tax in this country has ALWAYS been graduated, meaning that the more you make the more you pay. This is since the 16th amendment was ratified in 1913. The very top tax bracket when Reagan took office was 50%, his tax cuts lowered it to 28%. It has been raised some and lowered some since then. Obama's plan does not intend to raise it anywhere near the pre-Reagan numbers.

[bjl584]

It's a tough call with the current economic climate. Corporations and the rich have the ability to "pass the buck" so to speak when it comes to taxes. They can hide money in various funds, or just pass higher costs along to end users. The middle and lower classes don't have access to this. Personally, I think that a lot of tax policy is driven more by class envy and jealousy than it is by sound economics and mathematics. Higher taxes may have worked at one time in this country, but we now live in a global economic environment. Capital is like water flowing down a hill. It will eventually find and take the path of least resistance. If high taxes are the norm for corporations and the rich, then outsourcing will follow. An investment that a company or individual may have considered will sit on the shelf until conditions become more favorable. There goes all the jobs that that project would have created. The problem with taxing the rich is that rich people and rich entities sign your paycheck. The less friendly the government is to them, the less friendly they may be to you.