Posted by
Andrew Roman on Tuesday, October 07, 2008 1:39:43 AM
A tax lesson anyone?
Over at the Wall Street Journal this morning is one of those articles that should be made a mandatory read to anyone with even a little bit of juice floating around in the old brain-pan who plans on voting on November 4th.
Senator Barack Obama - fabled in song, story and campaign-trail fainting spell - has consistently peddled to the poll-going public the idea that Senator John McCain’s financial plan for America would be nothing more than a big bag ‘o juicy tax breaks for the wealthiest fat cats across the map.
Not so.
Not even close.
This is essential reading.
Andrew G. Biggs and Kent Smetters write:
As it happens, the top fifth of earners currently pay 67% of all federal taxes -- including not just income taxes, but payroll taxes, corporate taxes and death taxes. The top 1% of earners pay 26% of all federal taxes.
If the McCain proposal were passed, the top fifth would actually pay a greater share of total federal taxes and the top 1%'s share would decline by only 0.3%. In other words, high earners carry the vast majority of the federal tax burden and, despite what the media portrays as a shift from Scandinavian egalitarianism to Latin American inequity, would continue to do so under Mr. McCain's plan.
Read the entire story here.
Just a thought here ... but maybe someone should bring it up at tonight’s Presidential debate, don't you think?
According to Biggs and Smetters, the key issue, all-too often shunned by the main-stream media types, is the marginal tax rate. They write:
Moreover, can we say anything about whether the candidates' plans improve economic efficiency? Only if we look at whether the plans reduce marginal tax rates -- the amount of additional taxes paid for each additional dollar earned -- which determine incentives to work, save and create jobs.
As it happens, the McCain proposal would maintain current income tax rates and lower corporate taxes to help American businesses -- which ultimately provide American jobs and pay American wages -- compete in a global economy. By contrast, the Obama plan would increase marginal income tax rates on high earners and raise taxes on capital gains and dividends, with the likely effect of contracting labor supply, reducing rewards for saving, and increasing incentives to avoid taxes.
Pesky facts.
People in all fifty-seven states should read this.
Andrew Roman, Brooklyn, NY