Quote:
Originally Posted by Rekna
That is odd the article says Obama will phase out the child and dependent care credit yet Obama's website says he will expand it:
Barack Obama | Change We Can Believe In | Family
So which is it? Also if this article is factually correct why is it in an editorial?
-----Added 25/8/2008 at 03 : 08 : 30-----
Also looking at marginal tax rate is a bit misleading. The bottom line is do the families pay more or less overall? This article makes no mention of that. |
The "devil is in the details". His website states that he will make the credit refundable - meaning that for people who owe no tax would still benefit from the credit - sort of like ending up in a negative tax bracket. At some point in the income range that credit will go away. The family going from poverty to a livable wage will face not only the loss of the credit but will also potentially owe taxes on the additional income. Hence the marginal tax rate goes up at the threshold or cutoff point.
People who get the credit win. People who are getting the credit today but start making more money in the future are in for a marginal tax hit that is going to be pretty hard for working families. So, under Obama people will have an incentive to stay poor.
Like I wrote earlier in this thread, adding in state, local, and FICA taxes, a poor person trying to get ahead should not have to face what could easily be a 50% marginal tax hit. In many cases the "rich" wont face marginal tax rates that high. Just ask Warren Buffet or people like him. I think they actually secretly laugh as they support Democrats and their ideas about hitting the "rich" with more taxes.
-----Added 25/8/2008 at 05 : 29 : 11-----
Quote:
Originally Posted by Rekna
Except the article doesn't cite hardly anything. It sights one study vaguely and makes claims without citing the references for those claims. This article is an opinion piece and nothing more. There is not a single citation in that article for a person to fact check them.
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Here is a link to the Tax Policy Center (Brookings Institute):
Tax Facts | Tax Facts home
Here is a link to American enterprise Institute:
Welcome to AEI
I am betting some will say these organizations are biased, but like I suggest, they should give some information that counters the information they offer on tax policy.
And here is a link to the IRS Publication 17 for 2007:
http://www.tfproject.org/tfp/newrepl...eply&p=2512884
{added}Here is a link to the Tax Policy Center's report on their analysis of both candidates tax proposals. The good and the bad on both candidate's proposals.
http://www.taxpolicycenter.org/Uploa...es_summary.pdf