There has been some email and discussion regarding the tax proposals given by each presidential candidate. I would like to echo some of the comments.
Each presidential candidate on their web sites give proposals for tax changes.
Obama:
http://www.barackobama.com/issues/economy/
McCain:
http://www.johnmccain.com/Issues/JobsforAmerica/taxes.htm
Here are some comments regarding each item listed:
Obama:
1. Enact a Windfall Profits Tax to Provide a $1,000 Emergency Energy Rebate to American Families: The real evil is what companies pay the government in taxes. The current rate is about 35%! Where is that 35% going? Why can't we recover some of those trillions?
Regarding oil windfall, The last windfall tax in 1980 Hurt US production because the only location where the windfall could take place was in America. So what did this mean? The Oil companies outside the US (OPEC for example) now have all the non taxed oil and can import it cheaper. So.... Right on, make us more dependent on foreign oil. I thought the plan was to make us Energy independent.... Creating a new tax is a VERY bad move...
Oil company profits vary, but taken from the some of the predominate oil companies earlier this year the average profit is 8.5%.
See: http://seekingalpha.com/article/68720-with-some-oil-profit-margins-squeezed-choose-you-oil-carefully
It is estimated that oil companies net profit may be as little as 3 to 4 % of the total costs. Would you say that is to much. Who cares that google made 25% profit last year. 'Big oil' should pay for the high gas prices. They do not need to make so much in profit.... After all, they are not in business to make money they are in business to service us. I know lets just make it so they don't get any profit... and give all the 4% back to the people...
uh... ya and see how long oil companies stay in the US at all.
See:
http://www.taxfoundation.org/publications/show/1168.html
How about making it cheaper to do business in the US? How about lowering the current 35% to 40% that US companies pay to the government? Thus encouraging more US development and products, and whats that yes, more US oil. Simple supply and demand would lower the price of gas from there.
2. Provide $50 billion to Jumpstart the Economy and Prevent 1 Million Americans from Losing Their Jobs: Let me see if I understand this right, if a company is loosing money due to any reason, lets give them some tax money to prop them up for a few more months rather than making them "tighten their belt" and better manage them selves. This way the US can prolong the agony of bad service or poor quality or what ever is ailing the company, just so that a few people would not be inconvenience by having to better them selves and find another job. Great Idea, just keep people doing the same jobs that hold them back from their future. Can you think of any other ways to weaken the economy more? This tax proposal is a great Idea!
I have a better idea, Get an education! Get a better job! If searching not now, then when you loose your current worthless job start hunting. It is a free market stupid!
3. Provide a Tax Cut for Working Families: The "Making Work Pay" tax credit is # what in a long line of "tax credits" aimed at helping the "poor or middle class" people. Adding another tax credit is anti-growth to the future of the economy. Oh ya I almost forgot... we are raising the taxes on the "Rich" to pay for this tax cut and that way government can continue to grow.
So hurt the longterm free market to insure that for now a few people pay less in taxes. See #2. I'm for lowering taxes, cut government not growth! Lower taxes across the board!
4. Eliminate Income Taxes for Seniors Making Less than $50,000: When grandpa who is retired and has a massive retirement account, yet does not have any income, should not pay taxes. This seems strange coming from Democrats. Let me ask you this, When grandpa comes to visit, who takes the family out to eat? Old people predominately have money and more of it then young people. I'm all for killing all taxes, but why not again just lower everyone's taxes? Thats right I forgot, we have to create class envy. So why don't we pay old people from our middle class taxes... wait we already DO!
5. Simplify Tax Filings for Middle Class Americans: Are you serious? Have you ever filled out a 1040 EZ... it is ONE PAGE! Two if you count front and back... Oh... wait, thats right this is the party that thinks we are so stupid we don't know how to punch a hole in a paper ballot. Can't people be trusted to take care of themselves?
6. "Tax Cuts for Wealthy Instead of Middle Class: The Bush tax cuts give those who earn over $1 million dollars a tax cut nearly 160 times greater than that received by middle-income Americans. At the same time, this administration has refused to tackle health care, education and housing in a manner that benefits the middle class." See "The problem" section.
What is the role of our beloved government, I'll tell you to "establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity" where does it say the government should pay my health care bills? How about pay for my education? How about buy me a house? How about make me pay taxes at all? As I recall back in the early days of this great country, we didn't like taxes much, it seemed to hurt business.....
McCain:
1. Keep Tax Rates Low: Yes, for everyone, I'm for tax elimination if it was possible. There are but few things that should have to be paid for by the government.
2. Cut The Corporate Tax Rate From 35 To 25 Percent: Growth could explode if there were less company taxes. The funny thing is the government would actually collect more tax money if the rate dropped.
3. Allow First-Year Deduction, Or "Expensing", Of Equipment And Technology Investments: Dumb idea, When anyone buys something it will naturally depreciate. No need to find a deduction, just lower the initial tax more!
4. Establish Permanent Tax Credit Equal To 10 Percent Of Wages Spent On R&D: Again Dumb idea, Just make the initial tax lower! Then you don't have to keep looking for a tax credits.
5. Ban Internet Taxes: Now you are talking, NO tax is better! HUGE economic boom has happened on the Internet. Let us keep it going. It makes for a very strong free market.
6. Ban New Cell Phone Taxes: No taxes are good, but why single out one type of product... I fully agree that the use of a product after you buy it should not be taxed... this is almost a kin to property taxes... you buy a thing and then have to pay tax on it every use / time interval. I agree this Idea is all wrong!
Hope you had as much fun reading this as I did.
-- Peter Mathias
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