Wednesday, October 8, 2008

Obama's Tax Baloney And The Investor Class

1) highly injurious or destructive : deadly
2) archaic : wicked

McCain must go after Obama and his pernicious tax hike on small biz and capital gains.
He keeps letting Obama get away with this 'tax the rich and the biggest corporations' thing.
The claim is on its face false, since Obama himself admits the taxes start at $250k. I think the biggest corporations make a few tens of billions more than that. That's squarely in the range of small businesses who hire most of the workers in our economy.

Larry Kudlow has an insightful piece, Will McCain Make the Investor Connection?

He points out that we, the consumers, really pay the small business tax - because businesses of course must pass on all costs to their customers in some form - prices, less employees (less service), less phones, less rental space, etc.


The investor class is a huge voting bloc. Shareholders in recent national elections represented nearly two out of every three votes cast. And most surveys put the investor-class population at slightly over 100 million. This includes direct investment through brokerage accounts, although the vast majority of investor-class members own IRAs, 401(k)s, and defined-benefit plans, such as state and city pension funds.

But McCain never got specific on capital-gains and dividends, and he failed to educate voters on just how important investment is to healthy job-creating businesses.

Ditto for McCain’s proposed corporate tax cut. The senator wants to slash the business tax rate from 35 to 25 percent. It’s an excellent plan. But McCain doesn’t explain how two-thirds of the benefits of a corporate tax cut go to the workforce through higher wages, with the rest then going to shareholders. He also doesn’t point out that ordinary folks actually pay the corporate tax, since firms pass this tax cost along in the form of higher prices. So McCain could, in fact, call a corporate tax cut a consumer tax cut. But he’s not doing this.

McCain also needs to put investors on red alert about Obama’s middle-class tax cut. The Illinois senator’s huge government-spending plans will overwhelm his ability to cut taxes for 95 percent of the people. In fact, McCain needs to remind voters that Bill Clinton made exactly the same promise as a candidate in 1992 before he broke it as president in 1993.

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