9 responses so far ↓

• 1 dogatemyfinances // Sep 10, 2008 at 3:56 pm

  And then there’s the Social Security that might or might not increase and the small business taxes (those are killer) that might or might not change. I care about these and income taxes.

• 2 Andrew // Sep 10, 2008 at 6:13 pm

  I don’t believe this is accurate. I have not researched either candidate’s tax plan thoroughly, but based only on the information in the linked CBS article I don’t think your statement that Obama’s plan would only cost the “Rich Family” $5k more in taxes is correct.

  I earned slightly less than $1.1m last year, so based on Obama’s plan of “more than 39%” tax rate I would have paid an additional $44,000 in taxes. Writing quarterly $85k checks to the “United States Treasury” is painful enough, and there is no reason to raise taxes, it will only make it harder and harder for businesspeople to create jobs and keep the economy moving.

  Governmental budgets need to be reduced across the board.

• 3 Meg // Sep 10, 2008 at 6:30 pm

  I think it’s important to remember that these figures are averages and that these exact increases/decreases won’t be true for any particular family. Both candidates are planning to change multiple parts of the tax code, not just income taxes, so you can’t say “this is what will happen to your taxes if you’re making $50K.” It also depends if you’re an active investor, if you own real estate, if you buy or sell any assets, if you’re getting any inheritances, if you have kids, etc etc.

  I also think it’s important to remember that how your individual taxes will change isn’t the most important thing anyway. I’ll probably pay fewer taxes under Obama, but that doesn’t mean I’m going to vote for him if I don’t agree with what he wants to spend the increased tax revenue he’s planning to collect.

• 4 Livingalmostlarge // Sep 10, 2008 at 6:55 pm

  Andrew why don’t you figure out if the couple will only pay $5k more in income taxes. They will pay more in SS tax because Obama does want to lift the cap, but otherwise I think the CPA running the numbers is correct.

  Also realize that for many under McCain if you don’t have children you don’t get the same breaks as someone who does.

  And I didn’t do the numbers, a CPA analyzing the tax proposals did.

  Meg is also correct individual circumstances matter. What is important is they are picking “average” families of rich, middle, and lower class.

• 5 Boomie // Sep 10, 2008 at 8:26 pm

  You have to ask yourself:
  Which family do I want to be?
  Who gets the most benefits?

  Certainly NOT the middle class @$64,000. Those people are screwed.

  What’s the point of making $213,000 a year if you are going to have $5000 LESS at the end of the year. If they earn more or make a bigger profit, their taxes under Obama would go from 28% to almost 40%. Obama’s plan needs this salary group to keep earning money so that he can take it away and give half of it ($2200) to that low income $32,000 a year family (who by the way pay absolutely nothing in taxes) with the remaining $2800 going to governmental coffers.

  Who do you want to be?
  If you are the middle class can you rise up to the $250,000 level? Or can you slink back down to a $32,000 level and get to keep ALL of your money plus get a bonus?

  How long do you think people will continue to earn over $200,000 as they get to work longer, harder and keep less and less of what they earn?

  Obama’s plan is unsustainable.

  The CBS show did not accurately report on McCain’s tax plan. Of course not. The media favors Obama so you’ll never get the whole truth.

  McCain says the only way to correct our current system is to create jobs and increase wages. How do you do this? By cutting taxes on both the individual and businesses. McCain is not going to raise the salary-tax levels nor will he increase the capital gains tax (as Obama wants to raise them from 15% to 20%). McCain is going to double the dependent exemptions from $3500 to $7000, so those above listed families of 5 will get a $21,000 tax write off versus $10,500 for the 3 kids.

  CBS also failed to state that McCain is also going to give both individual and companies alike a $10,000 health care tax write off. In this way, ALL people, whether insured or not will benefit.

  Obama also wants to give low income families a 50% credit of up to $6000. You know, those low income families? The ones who don’t pay any taxes. He is also going to eliminate all taxes seniors pay who earn less than $50,000. Ah, what senior is earning $50,000 while collecting SSI? Where are those high paying senior jobs? I want one?
  Lastly, anyone who earns $250,000+ will see an increase in SSI taxes by 2%. Truthfully, SSI taxes stop for all those who earn above $97,000. Why the gap? There should be NO gap. All income should pay the SSI taxes.

  McCain will increase wages by providing incentives to employers. But the way I see it, he better hurry up because those American companies are leaving in droves in anticipation of the Obama tax hikes. Can you blame them?

  You have to be broke, poor and old to remain in the USA to get any benefit.

  Who is going to stick around and pay this bill?

• 6 LAL // Sep 10, 2008 at 8:32 pm

  First, McCain’s dependent credit will not benefit seniors or people with kids. But heck why do you need the benefit if you don’t have kids right?

  Second, you will be taxed on medical insurance premiums paid for by your company. Thus if they pay $20k for your insurance, that will be added to your Salary under McCain. Yes he’s giving you a $5k write off not $10k for medical insurance, but you have to pay taxes on your benefits from your employers. Our current insurance is close to $20k/year. Ouch.
  This will encourage companies to drop the health insurance plans but we have to buy our own. Have you seen the premiums in states other than New York where it’s not run by the state? I wonder if where you lived Boomie insurance wasn’t regulated by the state if you would find it so “affordable”?

  I do however agree about SS not being capped at $97k. So it’s not just federal income taxes but also SS that will be going up. However, McCain has not made any direct plans, he did say he thought it “might” have to be revamped and reconsidered the taxing of income. Reading between the lines I’d guess he isn’t sure what else to do but consider raising the income cap, maybe not as high but likely it will be raised.

• 7 Livingalmostlarge // Sep 11, 2008 at 10:19 am

  I’d also rather be making $213k and paying $5k more in taxes than be making $32k and getting back $2k in taxes!

• 8 Kristy // Sep 11, 2008 at 11:32 am

  LAL, I agree I would rather be making more $$ too. But Obama is pandering to the “middle class” about how is going to tax the “rich” and give back to the people. The middle class are going to be disappointed by only getting back $500. That money from the majority of Americans can do alot of good in this country.

• 9 LAL // Sep 11, 2008 at 1:45 pm

  I see nothing wrong with SS being uncapped. I think $97k is somewhat low.

  I am definitely thinking people will be disappointed with $500 but it’s better than nothing.

  I am worried that if medical insurance premiums are taxed we’ll be screwed royally, but what the heck.

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