Obama = lower individual taxes, but higher prices. McCain = not a lot of change in taxes. Which is best?

Question

I totally get that Obama will lower the visible taxes for those who make under $250k. And I get that raising the other taxes will indeed trickle-down to these same people. More corporate tax means higher priced goods, which these same people have to purchase every day.

What I don't know though is how much trickle-down will occur. With Obama, you individual tax rate will go down, but all your expenses will go up. And when they add foreign trade tariffs, they will go up even more.

To those who deny this, I don't care about your uneducated opinion.

With McCain, there will be little change, either way, on this regard - I think (I don't really know). I suspect however that they probably balance out.

Where I think the big difference between the two side will be is in new government programs. I am afraid that once they are created, they will be hard to get rid of and of all things, government costs seem to increase faster than any other things.

I am sure you can see that I am leaning toward the republican side, and that is because of the big government issue; however I would like to know if there is there a non-biased, non-partisan, study which takes into account all of these ssues that shows which plan will be less costly to the average person in the end?

Answer 1

how about looking at who is going to kill less people (meaning us citizens)

Answer 2

How is Obama going to lower taxes when he has all ready said that he will allow the last tax cuts to expire? Thus if you make 40k , you will be paying 4k more per year in taxes.

He can say anything he wants but the truth is not the same as what he says

Answer 3

Well...this sums it up.

Even the Obamessiah concedes that raising taxes is bad for the economy...but he says he must do it out of "fairness".

MrLinuxGuy citing his Economics 101 expertise...sorry...no cigar.

Here's a question..."What percentage taxes do corporations pay?"

Answer:  NONE!  Corporations don't pay taxes...their customers pay their taxes.

Answer 4

Here is a clue, corporations DO NOT PAY TAXES ! They pass on the additional tax drain to their customers. Raising taxes only makes corporations less competitive and sends even more jobs over seas.  

Answer 5

Considering that McCain will keep us in Iraq forever (or until all the Muslims convert to Christianity) and Obama has been talking about leaving Iraq, I'd say Obama is the better choice.  

The war will cost us more than taxes will.  How much are you paying for gas?

Answer 6

Obama doesn't understand that heavily taxing the productive sectors of the economy is bad for everyone. Oh, we will get our taxes raised for those under 250K, as Obama will not extend the Bush tax cuts which expire.

Answer 7

Obama voted to raise taxes on people making more than $31,850. What he tells the public and what he does is completely different.

"Barack Obama thinks higher taxes are a good thing"..."Obama’s claims to the contrary, his votes to raise taxes on people earning as little as $31,850 are straight from the Democrats’ tax-and-spend playbook" http://latimesblogs.latimes.com/washingt...

"Sen. Barack Obama Has Proposed A Laundry List Of Tax Hikes On The Campaign Trail, Which Would Hurt The Economy"..."Obama Has Called For Higher Income Taxes, Social Security Taxes, Investment Taxes, And Corporate Taxes, As Well As "Massive New Domestic Spending." http://www.houseconservatives.com/blog/b...

Answer 8

This is probably the most important issue.  Taxes have major effects on the economy.  And it's the economy that needs fixing.  Honestly from a middle-income perspective, I don't care who goes in on that front because raising or lowering taxes is just not going to affect my livelihood that much.  But taxing the corporations will.

Government spending, something the Republicans promise to reform is one good thing.  But also the search for energy alternatives and reform, which the Republicans have proved and are willing to do now is the kind of proactive thing we want to see and is the cause of the immediate inflation that has occurred this year.

I say McCain all the way.  He is better on our wallets in the long run.

Answer 9

It is all talk but I believe either will raise taxes. Obama's plan will cost jobs as it taxes the investors. No one knows for sure but this country has no money. What would you do to correct it? I say go back on the gold standard.

Answer 10

Little change.

Consider all the new social programs wants to get going is going to raise a our tax bill.

Those who don't think universal health care is not going to make their taxes go through the roof.

Just ask those in England, Canada, etc what their tax bill is for health care.

Someone has to pay for all that and McCain is the only one talking about attacking pork.

So on taxes it goes to McCain.  

Answer 11

The current administration has unfortunately expanded the size of our nation's government quite a bit, but let's say it was for our own good. The free market principles that McCain stands for leave much to individuals' own responsibility and to the charitable donations of the rich where help is needed, and this is a good thing because it keeps the size and complexity of government down in general. We can't really anticipate what will happen because market conditions may force the president to make unpopular and contradictory decisions when in office compared to during the campaign. However, principle is principle and the republican policies are generally better for the overall long-term health of the economy. There are exceptions, for example during the Clinton administration certain free market policies that you would ordinarly only see from a republican administration were adopted that brought increased prosperity to many (e.g., reduction of welfare). It is unlikely that we would see this from the Obama camp considering his lack of experience and record (or lack thereof) in this area. Corporate tax payments have gone down quite considerably yet prices have increased dramatically all the same because of higher commodity prices. Balancing the budget will be a top priority, and we can do that by increasing our income from exports and from corporate tax payments. McCain will have to make some tough decisions but he has the right people and philosophy so it should be possible to fix our nation's budgetary problems.  

Answer 12

I don't feel  like describing it, but, how many small businessess have to hide their profits?

Answer 13

You are correct.  It's wrong of anyone to assume that just because a business' taxes go up that they will eat that expense.  No, a business has to make a profit or it won't stay in business.  Therefore ... pass the savings ... er, expense on to you, the buyer.  And the Dems think we're stoopid enough to buy the lie.

As for added programs, if it breaks even I'd be surprised.  Therefore once they've added programs they either need to cut something (yeah, right) or ... umm, tax again.  So... hold on to your wallet if O gets elected, for that great sucking sound to the East is Washington gaining more vacuum.

Answer 14

"To those who deny this, I don't care about your uneducated opinion."

Sounds like you already have an answer to you non-question.

By the way, John McCain wants health insurance benefits made into taxable income.  In other words, the middle class gets a tax INCREASE.

Answer 15

Obama is best

Answer 16

Obama's tax plan is targetting those that make 250,000$ or more.

When was the last time a poor person paid your salary? Exactly.

The rich will still make just as much money and they will fire people to do just that. Taxing Big Business does nothing but push them overseas and to reduce the amount of people that work for them.

Therefore, taxing the rich is a bad thing.

We need jobs and if you push our companies overseas then where will our people work?  

Answer 17

Here's the dirty little secret about Obama's "tax cuts."  First, he pledges to end Bush's tax cuts....so they will likely be mostly offset by this fact.  Second, he's also promised to raise taxes on some big industries such as your local gas station....which will pass on the cost to you.  WHOOPS....there goes some more of your money.  Taxes on industries that everyone uses (such as the gasoline companies) are taxes on everyone who uses that industry's product.

Answer 18

You have apparently never taken economics if you think higher taxes will always lead to higher prices. Go take economics 101 and learn about the effect of taxation on supply and demand curves. It leads at times to higher prices, at other times to lower prices. Overall, price increases have more to do with the value of the dollar, which will keep plummeting under mccain.

Answer 19

I prefer Senator McCain's side.  I think that anyone who thinks you can tax a corporation without paying higher prices for that same product is fooling themselves.

Answer 20

There is no way Obama is going to be able to lower taxes and pay for all the c**p he wants to do. You could take every penny from people who make over $200,000 a years and you won't be able to pay for it. Don't you remember Clinton? "I tried and tried, but I just could find a way to make any tax cuts". And that was during the strongest economy in 40 years.

Reagan: Lowered my taxes

Clinton: Raised my taxes

Gore: Promised to raise my taxes

Kerry: Promised to raised my taxes

Bush: Lowered my taxes

Obama: Promises to let Bush's tax cut expire.

McCain: Promises to make Bush's tax cuts permanent.

And I am not even remotely close to be considered rich.

With Pelosi and Reid at the reigns of power, they are NOT going to give up any taxes and will spend every red cent they get there hands on. Obama will roll over like a whipped dog for them and Biden. If you pay taxes now, you will pay MORE under Obama.

Answer 21

Good Question.  I think you definately have to look at the long term to see which is ultimately going to be more cost efficient.  I think that our energy crisis is actually going to play a more pivotal roll in who's plans are going to be more economically friendly to the American people.  Investments in solar power and wind power research, as well as bio fuels is what Obama suggest will be his course of action.  This is extremely pricey, as this research and it's subsequent product, will not be something that will happen overnight.  This plan, however, will utilize self renewing resources more efficiently, ultimately lowering the cost of these forms of energy.  Obama's tax plan does lower individual taxs for people making under $250k a year, which incompasses most of us.  Obama is also going to cut the tax breaks for large companies and the richest 5%, meaning more tax money coming in from wealthy places.  This, in affect, will not cause the price of goods to rise the way many people think it will.

To be honest, I, like you, don't really know exactly what McCain plans to do tax wise.  However, there is no way to reasonably suspect that it will "balance out" with no proof of any plan to balance anything.  Off shore drilling, like solar and wind developement, will cost billions of dollars to develope.  Off shore drilling, however, presents an environmental issue that will have to be counteracted in the wake of it's developement and subsequent use.  This will also increase the american burning of fossil fuel without the active development of a viable alternative.  Ultimately, more money will have to be spent via the drilling off shore, and the cost of protecting the environment from the increased oil drilling, refinement, and burning.  We will then, still, have to find alternative sources once we deplete the off shore sources.

If we can clean up our ties with foreign oil leaders, purchasing oil will be more cost efficient than drilling for it in the long run.  We are a world full of interdependent nations now.  The "you need us, but we don't need you" philosophy no longer applies.  This doesn't mean that America is falling off, but that we are standing firm, while showing flexiblility in order to adapt and survive.  Trying to stand too strong will only cause us to break.

Answer 22

Change doesn't always mean for the best.

NOway, NOhow,NObama !!!

Answer 23

We cant keep borrowing money to run the govt..and to fight wars..

republicans live in LaLa land.

You realize that we havent spend 1 cent of US money in Iraq right?

not one cent...100% is on credit

yeah keep taxes lower, just keep borrowing

Answer 24

I'm not 100% sure - considering eventually we have to pay for this ongoing war in Iraq - we won't reap any benefits out of Iraqi oil as we would have by now...

Because of the poor management of this country, our taxes will have to go up - we import more then we export & aside from Israel we don't have any countries paying us back any money on any loans we have given...

EDIT - I enjoyed seeing the responses - and thanks to all for the thumbs down - however, it would be nice to see more edits on how they expect to cover a $10 Billion dollar-a-month program we have with Iraq - along with a trillion dollar deficit....

2nd EDIT w/ Facts - from an hour ago:

PALIN: "The Democratic nominee for president supports plans to raise income taxes, raise payroll taxes, raise investment income taxes, raise the death tax, raise business taxes, and increase the tax burden on the American people by hundreds of billions of dollars."

THE FACTS: The Tax Policy Center, a think tank run jointly by the Brookings Institution and the Urban Institute, concluded that Obama's plan would increase after-tax income for middle-income taxpayers by about 5 percent by 2012, or nearly $2,200 annually. McCain's plan, which cuts taxes across all income levels, would raise after tax-income for middle-income taxpayers by 3 percent, the center concluded.

Obama would provide $80 billion in tax breaks, mainly for poor workers and the elderly, including tripling the Earned Income Tax Credit for minimum-wage workers and higher credits for larger families.

He also would raise income taxes, capital gains and dividend taxes on the wealthiest. He would raise payroll taxes on taxpayers with incomes above $250,000, and he would raise corporate taxes. Small businesses that make more than $250,000 a year would see taxes rise.

Answer 25

We have a ten trillion dollar debt that we're going to have to start paying back sooner rather than later.  Taxes are already too low and spending too high .  We can't sustain these spending habits for much longer. Our tax base will be shrinking in the coming years because the baby boomers will be retiring.  But we shouldn't have to raise taxes.  We'll just let the Bush tax cuts expire.  What we will have to do is significantly cut spending.  We already have to borrow $500 billion a year to make up for what we don't collect in taxes.  It'll mean getting out of Iraq, cutting military spending, reforming our health care system to make it less expensive, and making cuts anywhere else we can.  

Note: the federal budget chart below shows the budget for 2008 at $2.9 trillion and the revenue from taxes at $2.66 trillion.  This is inaccurate due to the emergency spending for Iraq and Afghanistan that is not included in the budget.  It's a way to make the war cheaper than it actually is.  

Answer 26

McCain's plan would actually increase your taxes.

Answer 27

I'm not in an upper tax bracket, but I do have a 401K and a college fund for my two kids.  Obama may well lower my income tax slightly - I keep hearing Bush Sr saying "read my lips" whenever I hear it - but he will raise the tax on my investment accounts.  I've checked and it's not even a wash.  I'll be paying more under Obama.

Answer 28

The simple answer is as follows:

Obama equals higher taxes, bigger government and less individual freedom and choice

McCain/Palin equals less taxes, smaller government and more individual freedom and choice.

Answer 29

What part of letting the Bush tax cuts expire means an immediate increase to all tax payers to you Obama-nuts not undertsand?

Answer 30

I agree with your assumptions but don't know of any non-partisan study..I will check back to see if someone does...we already have numerous government programs and don't see that we need any more...

Answer 31

With Obama, you get higher taxes, higher inflation, and job losses...he is the return of Carter with a tad more color.