While the Obama tax plan hasn’t exactly changed, people might think it has because of Obama’s misleading (and dishonest) promise to offer a tax cut to everyone making less than $250K. Actually, the plan is to not necessarily increase taxes on people making less than $250K, which doesn’t mean a tax cut.
Joe Biden said in an interview that tax cuts will occur for people making less than $150K, not the previously stated $250K. This means there is a buffer zone between $150K and $250K, where some people may see a tax break, but the only guarantee is that they won’t have their taxes raised by Obama (if you believe that).
This only suggests that Obama likes to play with words, and he’ll probably use his ambiguity to claim that he’s been honest all along when people complain about getting a tax increase. Let’s also not forget that the current tax cuts expire after 2010, so we’ll all see higher rates then. You may get a small decrease up front, but it’ll be washed out by the tax cut expiration. This article has a basic comparison of how the candidates’ tax plans will affect various income brackets, before the current tax cuts expire, of course.
Obama has also been promising a pay-as-you-go practice, meaning any tax cuts we receive would be offset with spending cuts or higher taxes somewhere else. Do you think Obama is going to cut entitlement spending with the current Pelosi-Reid Congress in power? Anyone who thinks their taxes are going to be lower under Obama is exorcising wishful but foolish thinking.
