Do people really beleive that the Obama tax plan will hurt the economy?

Question

It's the economy stupid! If you need an explanation read on

The way the Obama plan works for the economy is lower taxes on singles making less than 200k and families and small business and start ups making 250k or less. Raising them on everyone else.

The reason this works is because if you are making more than that, chances are you have a business on the side or simply can afford it.

when the people who make less money have more as the tax breaks propose they will spend it, so business will get more revenue. They will pay more taxes, but at the same time get more revenue. That's why the economy was great in the 90's. Business flourished and people made more money. Rich people got richer, we had less poor people. The middle class could afford housing.

Republicans and democrats worked together for that, but then republicans worked by themselves and then the economy tanked

Answer 1

Not only is he not lowering anyone's taxes, he will let the Bush tax cuts expire which will actually raise everyone's taxes.   That way he can raise taxes without actually doing it.

Clinton's tax cuts on capital gains is in part why the economy was good in the 90s.  Have you forgotten that Obama says he will DOUBLE those?

Here is a lesson in Econ 101 that you seemed to have missed.  For an economy to prosper and grow, you need to keep as much money as possible in the private sector.  The economy never grows in REAL terms through government.

Answer 2

you are very right!

Bush F-ed up our country so bad!

and wasted so much money on that stupid pointless war...

it will take years to get it back to the way it was before...

so if we ever want our country back to the way it was we will have to pay higher taxes...

it's that simple...

like the old saying goes you gotta spend money to make money...

and who is to say if McCain wins, he won't turn around and make everyone pay higher taxes anyway?

I love always being right!

No seriously i'm always right!

Answer 3

Drawing the line on small business at 250k will stunt growth.

You failed to mention that he intends to raise employment taxes. So at the end of the year you might get a few extra dollars back in a refund but you and your boss will have paid out more in non refundable taxes, please read the fine print.

Answer 4

Obama's tax plan won't hurt the economy, it will devistate the economy.

Answer 5

I personally think Obama's tax plan is the pits and I haven't seen an economist yet who thinks it will be good for the country  

Answer 6

Obama's tax plan give some relief to  middle class but McCain is gonna give tax relief for big corporations and Oil companies...

Answer 7

When was the last time a tax increase ever improved the economy?

Actually it was the Regan Tax Cut that improved the economy but nice try.

The simple indisputable fact is tax increases NEVER improve the economy or prosperity

Answer 8

Um, yeah.  Carter tried that.  It didn't work.  Looks good on paper though.

Economics 301.

Answer 9

No when business pays more in taxes, they raise the price of their goods top offset the rise. Kind of like when you raise minimum wage, the prices of goods rise and negate the increase in pay. Why do you think just because your neighbor has more than you,  they should pay more because you don't?  

Answer 10

So how does his plan to double the Capital Gains Tax help middle class Americans who are the largest beneficiaries of Capital Gains?  By the way, the economy grew by 3.3% last quarter, seems like the crisis is passing.

Answer 11

Righto!  The economy is tanked.  Hope people remember that in the next two months and when they vote.

We all better focus on big issues like the economy.  GWB has done an excellent job of train-wrecking the economy.

Answer 12

obamas plan will increase taxes on businesses....this will hamper investements, expansions, research, production, etc....thats bad for the economy.

Answer 13

Well thanks for that imcomplete ECO 101 lesson.

Answer 14

Is it a problem within the Obama movement that you people are so misinformed on every Obama issue he has already lowered the threshold to $75,000.00 of course we know that Obama has attracted the most gullible people in the USA to his supporters

Answer 15

Yes they will!

When you tax a rich person, that leaves less money for business investment, and if you don't invest, workers lose jobs.

Whan you tax a business, that business passes the cost onto its customers in the form of higher prices.

As far as your comment about simply can afford it; that is a socilaist idea which most of America will reject.  I would rather have a difficult life in a free market society than any life in a socialisitic one.  To turn to socialism would go against the reason my great-grandfather fled Russia (yes I know, Russia was communist, but he understood socialism also and passed those stories down also).   I will not do that to a man who sacrificed so much for my future.

Answer 16

The Republicans don't want to give the details to the tax plans. They just say taxes will be raised by Democrats and leave it at that. As you said, only singles making over $200K and families making over $250K would get their taxes raised. How many people here make more than that?

The economy was great in the 90s. Now look at it. Why didn't the Republicans address the economy and healthcare? All they want to do is rally around a holy war.

Answer 17

The 1990s economy wasn't due to anything the government did.  It was the "dot com" bubble, and it didn't last.

You haven't taken a close enough look at the Obama tax plan. His plan is to have middle-income Americans paying an average of $2200 more in taxes a year.

Obama's plan calls for punishing business, which means they're going to have to raise prices.  People who, under Obama's tax plan, have a lot less money to spend will be faced with even higher prices... and forced to buy less.  Which in turn is going to force businesses to close, which will put people out of work... which will lead to lower sales to other businesses. And it will keep repeating itself.  It's a horrible, downward spiral.. and Obama just doesn't seem to care, or is too clueless to understand.

Answer 18

If you believe Obama is going to actually cut taxes on the middle class, then you belives him when he promised to take public financing and railed against the evils of not taking that option, which promise he later broke.

If you believe Obama is going to give middle america a tax break, then you believed Clinton when he said it ... and Clinton didn't deliver it either. Clinton raised taxes, gave us the largest tax hike in history. AND anyone who's been paying attention to empirical evidence knows that every single times taxes have been cut, it resulted in higher revenues. Anyone with half a brain knows that the economy under Clinton was a false economy based on a tech bubble, which burst while Clinton was still in office and the economy started tanking.

You can't trust Obama, or actually most any democrat in office, because all they live on is lies and the support in those lies by the liberal media.

If the democrat party was the wicked witch of the West, the bucket of water that would melt them would be the simple truth. Without the lies they would melt away, like the wicked witch of the west when she was hit with that bucket of water.

Answer 19

Better than spending assloads of money (when you belong to the party that promotes little to no spending, especially not on earmarks and pork) on something tremendously costly like the Iraq Project, WITHOUT backing it up and hiking up the deficit.

Answer 20

i think it wouldnt hurt, i think it is better! they should raise the tax on the rich! they are makin all the money

Answer 21

If you've taken economics then answer me this..... If a corporation has it's taxes increased, where do they get the money back from to offset the tax increase? Hmmmmm..... I think we can agree that it will be the consumer. That means YOU genius.

Answer 22

Republicans, who's rich inner circle will be affected by Obama's tax plan, are simply hoping that if they spread that lie enough, they will stick with people who don't verify their stories.

Answer 23

Tax increases are contractionary.  Take a macroeconomics course.

Answer 24

Wow, how much money did you have to spend at a state college to figure all that out. It was wasted money obviously!! There will always be poor people. If everyone was making the same then I suppose there would be no rich people anymore, then who do we tax? Taxing people for working hard and making a lot of money, then we wonder why those business don't want to keep their money in the US economy and they outsource. TAXES!! Maybe we should start taxing people for being stupid!!

Answer 25

you are right about the republican tanking it this past 8 years. they spent money we did not have right along side the democrats.  however, obamas plan is nothing more than a back door multi-million dollar tax on americans. it will drive this almost bankrupt country of ours right over the cliff.

Answer 26

I definetely agree with Lawrence.  Obamas strategy would only set us back.  Higher taxes on businesses and corporations mean higher prices to pay.  Don't forget that when they pay more, we pay more.  Obama likes to blab about how jobs have gone overseas in his speeches, but fails to put forward an effective plan to keep corporations and jobs here where we need them.  Plus we need MORE JOBS and less handouts.  A paying job can better help a panhandler in the street than handouts and pity, which will only leave him stuck where he is.