Thursday, February 28, 2008

Tax Me Part II


Mr Obama has said that he would cut taxes for the middle class, and that he would pay for his health, infrastructure and other programmes partly by pulling American troops out of Iraq and partly by increasing taxes on the rich. Sceptics doubt that pulling out of Iraq will be easy, however. And they fret that Mr Obama's tax hikes for the rich, who already pay nearly all the income taxes in America, would have to be so high that the economy would suffer. By letting the Bush tax cuts expire, Mr Obama would hike the top rate of income tax from 35% to 39.6%. If he were to let the payroll tax apply to high incomes, too, he would add another 12.4%, split between employee and employer. Add state and local taxes, which are over 10% in New York City, and marginal tax rates for the well-off would be steep indeed. This would be a 50% are more tax rate for the rich. Also, that would not still cover all that Obama is promising. Therefore, the middle class will have to pay more. Is that not a tax hike on the average Joe? Will this become a burden on the economy? This makes no sense at all. Is most of the promises Obama is making, just talk to get elected? Looks like higher taxes to come or, just more broken promises. I think a mix of both. No changes here, more of the same old, same old.