Barack Obamas plan on middle class taxes?

Question

So I am researching on politicians and educating myself in order to make a deicision on who to vote for, for the highest good of the nation. I am reading on Obama's plan for the middle class and this is what I read:

"Barack Obama's Plan
Provide Middle Class Americans Tax Relief
Obama will cut income taxes by $1,000 for working families to offset the payroll tax they pay.

Provide a Tax Cut for Working Families: Obama will restore fairness to the tax code and provide 150 million workers the tax relief they need. Obama will create a new "Making Work Pay" tax credit of up to $500 per person, or $1,000 per working family. The "Making Work Pay" tax credit will completely eliminate income taxes for 10 million Americans."

I don't get it. What does that mean?

Answer 1

Obama’s plan to “relieve the burden of the middle class” includes four points:

1) an income tax cut of $500 per person (or $1,000 per working family) for 150 million Americans;

2) a universal mortgage interest credit of 10% for homeowners who make under $50,000 a year;

3) the elimination of income tax for retirees making less than $50,000 a year; and

4) simplifying the process of filing a tax return.



How would Obama pay for these tax cuts?



Obama plans to eliminate the carried interest loopholes that benefits hedge funds and adjust the top dividends and capital gains rate between 20% and 28%. The campaign also claims that aggressively seeking out international tax shelters, challenging existing loopholes, and requiring countries that harbor tax havens to be open about who is investing in them would allow the IRS to reap the $85 billion in lost revenue back.



(proceed with caution)

Answer 2

When I read Sen Obama’s middle class tax cut plan, I was reminded why it pays to have a President who has actually run something. A corporation, a NGO, a state, or even a small business will do. Here is his wonderful plan. Raise taxes on the so-called rich businesses and give it to seniors, lower middle class earners, and the poor. He claims there are a trillion dollars in corporate tax loopholes. Well the entire economy is only around13.2 trillion dollars. Total corporate profits in the entire decade of the 1990’s was only 4.5 trillion dollars. Total annual corporate taxes are just 370 billion dollars or so. My point is only in the Mythical Land of Narnia could those numbers be twisted to equal a trillion dollars in missed taxes on profits unless he wants to own all corporate profits and then some. Maybe he does. He is afterall the most liberal Senator in the nation for a reason. Even Public Citizen only puts total Corporate Welfare including tax breaks at about 160 Billion. Citizens for Tax Justice may have found their candidate. Those who are looking for a better job in the next 4 years have not. Sen Obama’s tax policies would take us into an economic land of perpetual winter. Sen Obama has obviously not had much experience with the part of America which works and creates wealth. He is a career activist and professor of law. Wonderful sounding speaches, speeches slim on substance, do not make a wonderful policy or a wonderful President.

Answer 3

Obama's plan somewhat depends on where you live as far as who it benefits. If you're in a high cost of living area (Most California cities, Boston, Hawaii, New York), you're gonna get screwed by Obama and his tax plan. It's a bunch of bs in those cities because it really doesn't apply to the "middle class". I'm totally disillusioned by the guy now (and I voted for him in the primary). You might want to read this article to get an idea of what the ramifications of his tax plan are. The Cato Institute is Libertarian so they don't have a bias to Dems or Republicans.



http://www.cato.org/pub_display.php?pub_id=9224



I'm starting to think he'll say anything to get elected. I don't need to hear how he's gonna put a "chicken in every pot". What I do need to hear are details of how he plans to finance this huge agenda he has (he's been extremely vague about that, but I'm hoping to public will push him for more details when he takes on McCain). Just taxing people won't do it...but it will screw us in the process. And I'm not going to let the war dictate who I'll vote on, because in the grand scheme of things there are many issues of equal importance but many people don't seem to want to pay attention to anything but the war. I also think the Universal Health Plan is an awful idea and Obama's is the worse because he doesn't intend on mandating payment by everyone (even Hillary has enough sense to know that's the only way it might make sense). If that passes, we'll regress back to mid-1900s on medical research (why would the medical industry be motivated when there's a cap on all medical procedures?). Personally, I wish I could design my own candidate that would have aspects of both parties (hate this all or nothing bs because it's always which person is the better of two evils).

Answer 4

The Congress would have to vote it in.



Have to wonder why he didn't ask for it be put into the budget they just did. As far as I know that one actually increases taxes for the middle class. Apparently they wanted to spend more on some social programs and felt the middle class should pay higher taxes.

Answer 5

It looks like a tax credit of $1,000 per working family could effectively mean you would owe no taxes and get all of your taxes back at tax time.

Answer 6

plan is to provide the middle class with tax relief, with 1000 ??

Answer 7

YOu have to understand that his definition of a top earner for the middle class is 37,000.

Answer 8

Sounds like he may be robbing peter to pay paul.

Answer 9

Sounds like a welfare state, don't belief a thing a socialist says.