Monday, June 16, 2008

Will Voters "Fall" for McCain's Tax Cuts for the Wealthy? FNS Thinks So

This week the non-partisan Tax Policy Center took a look at the tax policies outlined by candidates John McCain and Barack Obama. Despite the fact that the report states that middle-income families will receive nearly 3x the tax cuts with Obama's plan than with McCain's plan, and despite the obvious perks for the wealthy in McCain's plan, Fox News Sunday believes that middle-class voters will end up believing that Obama's plan amounts to a tax hike for them.

The report states that families making between $37,595 and $66,354 annually would get an average tax cut of $1,042 per family with Obama; with McCain the cut would be $319, the report states.

Additionally, the report finds that 23% of McCain’s tax cuts go to the wealthiest Americans, those making more than $2.8 million a year. His plan would give this group an average tax cut of $270,000. Meanwhile, Obama would raise taxes for these wealthy families by an average $700,000 a year.

The report (.PDF) concludes by saying:
The Obama tax plan would make the tax system significantly more progressive by providing large tax breaks to those at the bottom of the income scale and raising taxes significantly on upper-income earners. The McCain tax plan would make the tax system more regressive, even compared with a system in which the 2001–06 tax cuts are made permanent. It would do so by providing relatively little tax relief to those at the bottom of the income scale while providing huge tax cuts to households at the very top of the income distribution.
I would be amazed to see middle-income earners think that giving the rich more tax burden is bad. The only people who should see this as a tax increase are the wealthy - who can afford it.

Despite this, on Fox News Sunday, Bill Kristol said:
He can say it's only a tax on the wealthy, but I think a lot of voters think we've been down that road with the Democrats before. If there's a Democratic president and a Democratic Congress, will they keep that $250,000 or will they creep down trying to get more revenues. I think the tax issue is now setting up well for McCain.
Listen to the exchange after that:
Juan Williams: One last thing on this economic thing. I think if you say to most Americans the tax cut is going, simply a matter of not continuing President Bush's tax cuts in 2010, they don't view that as raising taxes. That's the wealthy who might say that, but it's not on average people who are feeling higher gas taxes; it's not on average people who have to pay more for food. It's almost like you guys are out of touch with what ordinary Americans are going through in this country at this time. People want government to respond to need and not simply to talk about more tax breaks for the rich and for big corporations.

Brit Hume: That’s what McCain’s doing, for sure. He’s saying, I want more tax cuts for big corporations, and I want the rich to get richer off the tax code. Oh, what baloney. That’s not what it’s about at all.
Groan. It's not? The fact and numbers are clear. Oh, and let's not forget: all these pundits on these TV shows: they qualify for the tax increases, so what would you expect them to say? BTW, Juan, thanks for bringing up the class divide: it's not just these pundits that are out of touch; it's our politicians. Let's not forget where most of them would end up on the income scale.

I sincerely hope that Americans are smart enough to look at the numbers and see through the McCain plan.

Finally, this is another case of something for nothing: you can't have it. If you want to keep this country running, you can't keep cutting taxes, particularly to the wealthy. Someone has to pay for the infrastructure and running of this country. Or would you rather such things be paid for with lives, as in the Minnesota bridge collapse last year?

Watch the FNS video:

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