Obama's Tax Cut v. McCain's Tax Cut - Why Obama's Is Much Better

[Median Democrat]

Why do I think Obama's tax cut will do more than McCain's tax cut?

Well, lets look at who is middle class. The median household income in 2007 was about $50,000, which I will assume is what Obama refers to as the middle class. McCain has used $5,000,000 annual income as rich, so lets say that $2,000,000 annual income is roughly middle class for John McCain.

A family making about $50,000 in annual income will get a $970.76 tax cut, which is $210.42 more than the $760.34 cut you will get from McCain.

A family making about $2,000,000 in annual income will get a tax increase of $136,232.25 a year, but a tax cut of -$33,706.45 under McCain, which for a $2 million making household is a $169,000 swing.

Now, why do I think that Obama's tax cut does more?

Well, who is more likely to spend their full tax cut in a recession, the $50,000 household or the $2 million household?

The $50,000 household probably has no choice but to apply their tax cut to immediate spending, which helps fuel the economy. The McCain tax cut, on the other hand, primarily benefits the extremely rich who probably will be inclined to save their tax savings in a recession, because they have that luxury. A developer may be reluctant to develop a strip mall in a recession, because who would lease that property, so the rich developer will probably wait for signs of recovery in the market before starting construction.

Put another way, the rich tend to get richer, because they tend to save, which is a luxury for most middle class Americans. With Obama's tax cut, more people can have the luxury of saving the additional money they would save under an Obama plan or perhaps even better saving it. Still, it is likely that they will spend that tax cut, which may help the economy recover from the recession.

[silverojo]

1. Because McSame's a fucking liar and won't give the middle-class any tax cut

Typical Repuke.

[Median Democrat]

2. Also, the difference does not take into account McCain's Plan To Tax Health Care Benefits...

McCain says each family will get a tax credit, but the credit is significantly less than the cost of insurance. Worse, as many folks discover, if you have poor health, you may find it difficult to even find insurance if your employer decides to drop health insurance.

[Cresent City Kid]

3. McCain's 2 part health plan

1. Don't get sick.
2. Don't get hurt.