Senator Obama's Four Tax Increases for People Earning Under $250k

[tocco05]

I confess. Senator Obama's two tax promises: to limit tax increases to only those making over $250,000 a year, and to not raise taxes on 95% of "working Americans," intrigued me. As a hard-working small business owner, over the past ten years I've earned from $50,000 to $100,000 per year. If Senator Obama is shooting straight with us, under his presidency I could look forward to paying no additional Federal taxes -- I might even get a break -- and as I struggle to support a family and pay for two boys in college, a reliable tax freeze is nearly as welcome as further tax cuts.


[FONT=times new roman,times]However, Senator Obama's dual claims seemed implausible, especially when it came to my Federal income taxes. Those implausible promises made me look at what I'd been paying before President Bush's 2001 and 2003 tax cuts, as well as what I paid after those tax cuts became law. I chose the 2000 tax tables as my baseline -- they reflect the tax rates that Senator Obama will restore by letting the "Bush Tax Cuts" lapse. I wanted to see what that meant from my tax bill. [/FONT]


[FONT=times new roman,times]I've worked as the state level media and strategy director on three Presidential election campaigns -- I know how "promises" work -- so I analyzed Senator Obama's promises by looking for loopholes. [/FONT]


[FONT=times new roman,times]The first loophole was easy to find: Senator Obama doesn't "count" allowing the Bush tax cuts to lapse as a tax increase. Unless the cuts are re-enacted, rates will automatically return to the 2000 level. Senator Obama claims that letting a tax cut lapse -- allowing the rates to return to a higher levels -- is not actually a "tax increase." It's just the lapsing of a tax cut. [/FONT]


[FONT=times new roman,times]See the difference? [/FONT]


[FONT=times new roman,times]Neither do I. [/FONT]


[FONT=times new roman,times]When those cuts lapse, my taxes are going up -- a lot -- but by parsing words, Senator Obama justifies his claim that he won't actively raise taxes on 95 percent of working Americans, even while he's passively allowing tax rates to go up for 100% of Americans who actually pay Federal income taxes. [/FONT]


[FONT=times new roman,times]Making this personal, my Federal Income Tax will increase by $3,824 when those tax cuts lapse. That not-insignificant sum would cover a couple of house payments or help my two boys through another month or two of college.[/FONT]


[FONT=times new roman,times]No matter what Senator Obama calls it, requiring us to pay more taxes amounts to a tax increase. This got me wondering what other Americans will have to pay when the tax cuts lapse. [/FONT]


[FONT=times new roman,times]For a married family, filing jointly and earning $75,000 a year, this increase will be $3,074. For those making just $50,000, this increase will be $1,512. Despite Senator Obama's claim, even struggling American families making just $25,000 a year will see a tax increase -- they'll pay $715 more in 2010 than they did in 2007. Across the board, when the tax cuts lapse, working Americans will see significant increases in their taxes, even if their household income is as low as $25,000. See the tables at the end of this article.[/FONT]


[FONT=times new roman,times]Check this for yourself. Go to [/FONT][FONT=times new roman,times]http://www.irs.gov/formspubs/[/FONT][FONT=times new roman,times] and pull up the 1040 instructions for 2000 and 2007 and go to the tax tables. Based on your 2007 income, check your taxes rates for 2000 and 2007, and apply them to your taxable income for 2007. In 2000 -- Senator Obama's benchmark year -- you would have paid significantly more taxes for the income you earned in 2007. The Bush Tax Cuts, which Senator Obama has said he will allow to lapse, saved you money, and without those cuts, your taxes will go back up to the 2000 level. Senator Obama doesn't call it a "tax increase," but your taxes under "President" Obama will increase -- significantly.[/FONT]


[FONT=times new roman,times]Senator Obama is willfully deceiving you and me when he says that no one making under $250,000 will see an increase in their taxes. If I were keeping score, I'd call that Tax Lie #1.[/FONT]


[FONT=times new roman,times]The next loophole involves the payroll tax that you pay to support the Social Security system. Currently, there is an inflation-adjusted cap, and according to the non-profit Tax Foundation, in 2006 -- the most recent year for which tax data is available -- only the first $94,700 of an unmarried individual's earnings were subject to the 12.4 percent payroll tax. However, Senator Obama has proposed lifting that cap, adding an additional 12.4 percent tax on every dollar earned above that cap -- and in spite of his promise, impacting all those who earn between $94,700 and $249,999. [/FONT]


[FONT=times new roman,times]By doing this, he plans to raise an additional $1 trillion dollars (another $662.50 out of my pocket -- and how much out of yours?) to help fund Social Security. Half of this tax would be paid by employees and half by employers -- but employers will either cut the payroll or pass along this tax to their customers through higher prices. Either way, some individual will pay the price for the employer's share of the tax increase.[/FONT]


[FONT=times new roman,times]However, when challenged to explain how he could eliminate the cap AND not raise taxes on Americans earning under $250,000, Senator Obama [/FONT][FONT=times new roman,times]suggested on his website[/FONT][FONT=times new roman,times] that he "might" create a "donut" -- an exemption from this payroll tax for wages between $94,700 and $250,000. But that donut would mean he couldn't raise anywhere near that $1 trillion dollars for Social Security. When this was pointed out, Senator Obama's "donut plan" was quietly removed from his website. [/FONT]


[FONT=times new roman,times]This "explanation" sounds like another one of those loopholes. If I were keeping score, I'd call this Tax Lie #2.[/FONT]


[FONT=times new roman,times]Senator Obama has also said that he will raise capital gains taxes from 15 percent to 20 percent. He says he's aiming at "fat cats" who make above $250,000. However, while only 1 percent of Americans make a quarter-million dollars, roughly 50 percent of all Americans have capital investments -- through IRAs, 401Ks, in pension plans and in personal portfolios. Most of that half of all Americans will feel this rise in their capital gains taxes. [/FONT]


[FONT=times new roman,times]Under "President" Obama, if you sell off a $100,000 investment -- perhaps to help put your children through college -- instead of paying $15,000 in capital gains taxes today, you'll pay $20,000 under Obama's plan. That's a full one-third more, and it applies no matter how much you earn. [/FONT]


[FONT=times new roman,times]No question -- for about 50 percent of all Americans, this is Tax Lie #3.[/FONT]


[FONT=times new roman,times]Finally, Senator Obama has promised to raise taxes on businesses -- and to raise taxes a lot on oil companies. I still remember Econ-101 -- and I own a small business. From both theory and practice, I know what businesses do when taxes are raised. Corporations don't "pay" taxes -- they collect taxes from customers and pass them along to the government. When you buy a hot dog from a 7/11, you can see the clerk add the sales tax, but when a corporation's own taxes go up, you don't see it -- its automatic -- but they do the same thing. They build this tax into their product's price. Senator Obama knows this. He knows that even people who earn less than $250,000 will pay higher prices -- those pass-through taxes -- when corporate taxes go up. [/FONT]


[FONT=times new roman,times]No question: this is Tax Lie #4.[/FONT]


[FONT=times new roman,times]There's not a politician alive who hasn't be caught telling some minor truth-bender. However, when it comes to raising taxes, there are no small lies. When George H.W. Bush's "Read my lips -- no new taxes" proved false, he lost the support of his base -- and ultimately lost his re-election bid. [/FONT]


[FONT=times new roman,times]This year, however, we don't have to wait for the proof: Senator Obama has already promised to raise taxes, and we can believe him. However, while making that promise, he's also lied, in at least four significant ways, about who will pay those taxes. If Senator Obama becomes President Obama, when the tax man comes calling, we will all pay the price. And that's the truth.[/FONT]


[FONT=times new roman,times]Tax Rates - and the Obama Increase - $50,000/year Taxable Income[/FONT]

<TABLE border=0><TBODY><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]
[/FONT]</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2000 Tax Tables[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2003 Tax Tables[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2004 Tax Tables[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]2010 Tax Tables - (Bush Tax Cuts have Expired)[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]Increase with Obama Tax Increase*[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Taxable Income[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$50,000[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$50,000[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$50,000[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$50,000[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$50,000[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Single[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$10,581[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$9,304[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$9,231[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$10,581[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$1,350[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Married - Filing Joint[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$8,293[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$6,796[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$6,781[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$8,293[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$1,512[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Married - Filing Separate[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$11,143[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$9,304[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$9,231[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$11,143[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$1,912[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Head of Household[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$9,424[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$8,189[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$8,094[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$9,424[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$1,330[/FONT]

</TD></TR></TBODY></TABLE>

[FONT=times new roman,times]Tax Rates - and the Obama Increase - $75,000/year Taxable Income[/FONT]

<TABLE border=0><TBODY><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]
[/FONT]</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2000 Tax Tables[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2003 Tax Tables[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2004 Tax Tables[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]2010 Tax Tables - (Bush Tax Cuts have Expired)[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]Increase with Obama Tax Increase*[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Taxable Income[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$75,000[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$75,000[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$75,000[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$75,000[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$75,000[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Single[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$17,923[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$15,739[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$15,620[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$17,923[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$2,303[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Married - Filing Joint[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$15,293[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$12,364[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$12,219[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$15,293[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$3,074[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Married - Filing Separate[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$18,803[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$16,083[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$15,972[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$18,803[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$2,831[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Head of Household[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$16,424[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$14,439[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$14,344[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$16,424[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$2,080[/FONT]

</TD></TR></TBODY></TABLE>


[FONT=times new roman,times]Tax Rates - and the Obama Increase - $100,000/year Taxable Income[/FONT]

<TABLE border=0><TBODY><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]
[/FONT]</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2000 Tax Tables[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2003 Tax Tables[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]2004 Tax Tables[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]2010 Tax Tables - (Bush Tax Cuts have Expired)[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]Increase with Obama Tax Increase*[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Taxable Income[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$100,000[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$100,000[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$100,000[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$100,000[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$100,000[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Single[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$25,673[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$22,739[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$22,620[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$25,673[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$3,053[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Married - Filing Joint[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$22,293[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$18,614[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$18,469[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$22,293[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$3,824[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Married - Filing Separate[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$27,515[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$23,715[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$23,504[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$27,515[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$4,011[/FONT]

</TD></TR><TR><TD style="WIDTH: 98px" vAlign=top>[FONT=times new roman,times]Tax: Head of Household[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$23,699[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$20,741[/FONT]

</TD><TD style="WIDTH: 108px" vAlign=top>[FONT=times new roman,times]$20,594[/FONT]

</TD><TD style="WIDTH: 100px" vAlign=top>[FONT=times new roman,times]$23,699[/FONT]

</TD><TD style="WIDTH: 117px" vAlign=top>[FONT=times new roman,times]$3,015[/FONT]

</TD></TR></TBODY></TABLE>

[FONT=times new roman,times]* When "President" Obama allows President Bush's tax cuts of 2001 and 2003 to expire, this will amount to a de facto tax increase -[/FONT]

 

[cussin'it]

Ya got a source for this Tacco?

 

[cussin'it]

Nevermind, I found it for ya, you
plagerizing drittsekk

http://www.americanthinker.com/2008/10/senator_obamas_four_tax_increa.html

 

[bilbal]

"but employers will either cut the payroll or pass along this tax to their customers through higher prices. Either way, some individual will pay the price for the employer's share of the tax increase."

"Corporations don't "pay" taxes -- they collect taxes from customers and pass them along to the government."

These two statements here are the ones that drinkers of the Obama Kool Aid just can never grasp from an educational standpoint. They will just blindly believe that they truly aren't the ones paying, when they are and always will be. It was like I said in another post:

The basic problem with Obama's socialist program is that no matter how much money he takes from the rich and gives to the poor, the poor will be giving it right back to the rich. Whether it is through rent increases, a lower paycheck, a higher cost, whatever, they are not keeping it.

 

[fletchisrhsm]

Tonto - don't you have any more headlines to post filled with such (sic) truthful and important fun facts like face carvings? You know it is Halloween time?

:missingte

 

[Preussen]

[FONT=times new roman,times]Under "President" Obama, if you sell off a $100,000 investment -- perhaps to help put your children through college -- instead of paying $15,000 in capital gains taxes today, you'll pay $20,000 under Obama's plan. That's a full one-third more, and it applies no matter how much you earn. [/FONT]

Just so that I understand it right - if you have, say, invested $80,000 in shares and sell those shares when they are worth $100,000 you have to pay capital gains taxes on the full $100,000? I thought these taxes would only apply to the $20,000 gain you realised?

 

[fletchisrhsm]

Just so that I understand it right - if you have, say, invested $80,000 in shares and sell those shares when they are worth $100,000 you have to pay capital gains taxes on the full $100,000? I thought these taxes would only apply to the $20,000 gain you realised?

I would assume that is capital gain, the 20,000 gain. Unless i flunked my Econ 101 class. but i didnt bother reading those post considering Tontos recent train wreck he posted the other day, so i could be wrong, or your wrong.

 

[barman]

But it sounds so much more dramatic when you just lump the entire $100K investment into a faux profit!

 

[barman]

And if you sell off a $100K investment once Obama is President, you'll be required to have a $$ sign carved into your face by a big, angry black man while lying on the ground outside your neighborhood ATM at 2am in the morning.

 

[Mistermj]

"but employers will either cut the payroll or pass along this tax to their customers through higher prices. Either way, some individual will pay the price for the employer's share of the tax increase."

"Corporations don't "pay" taxes -- they collect taxes from customers and pass them along to the government."

These two statements here are the ones that drinkers of the Obama Kool Aid just can never grasp from an educational standpoint. They will just blindly believe that they truly aren't the ones paying, when they are and always will be. It was like I said in another post:

The basic problem with Obama's socialist program is that no matter how much money he takes from the rich and gives to the poor, the poor will be giving it right back to the rich. Whether it is through rent increases, a lower paycheck, a higher cost, whatever, they are not keeping it.

Post of the Day...well done. :aktion033

 

[Preussen]

I would assume that is capital gain, the 20,000 gain. Unless i flunked my Econ 101 class.

Okay, if that is so it means Obama proposes to take a little more from those profits made by simply letting your money work for you. Question for the resident Republicans - is this, too, an example of a socialist unfairly taking money from the hard-working wealthy?

 

[bilbal]

Just so that I understand it right - if you have, say, invested $80,000 in shares and sell those shares when they are worth $100,000 you have to pay capital gains taxes on the full $100,000? I thought these taxes would only apply to the $20,000 gain you realised?

It depends on where the 80k came from.

 

[MadTiger]

"but employers will either cut the payroll or pass along this tax to their customers through higher prices. Either way, some individual will pay the price for the employer's share of the tax increase."

"Corporations don't "pay" taxes -- they collect taxes from customers and pass them along to the government."

These two statements here are the ones that drinkers of the Obama Kool Aid just can never grasp from an educational standpoint. They will just blindly believe that they truly aren't the ones paying, when they are and always will be. It was like I said in another post:

The basic problem with Obama's socialist program is that no matter how much money he takes from the rich and gives to the poor, the poor will be giving it right back to the rich. Whether it is through rent increases, a lower paycheck, a higher cost, whatever, they are not keeping it.

MBA-educated Obama supporter here.

Waiting for you to make sense (something other than conjecture).

 

[barman]

BILBAL opines: The basic problem with Obama's socialist program is that no matter how much money he takes from the rich and gives to the poor, the poor will be giving it right back to the rich.

SH: Well then, there's therefore little reason for the Rich to have much issue with Obama's purported influence on upcoming tax structure.

Under McCain, they stay rich.

Under Obama, they stay rich.

Looks like the best strategy in the coming eight years is to be Rich and you'll not have much about which to worry.

 

[Preussen]

"but employers will either cut the payroll or pass along this tax to their customers through higher prices. Either way, some individual will pay the price for the employer's share of the tax increase."

"Corporations don't "pay" taxes -- they collect taxes from customers and pass them along to the government."

These two statements here are the ones that drinkers of the Obama Kool Aid just can never grasp from an educational standpoint. They will just blindly believe that they truly aren't the ones paying, when they are and always will be. It was like I said in another post:

The basic problem with Obama's socialist program is that no matter how much money he takes from the rich and gives to the poor, the poor will be giving it right back to the rich. Whether it is through rent increases, a lower paycheck, a higher cost, whatever, they are not keeping it.

There is certainly some truth to that. However, it shows that something is wrong with the market. In a true market economy it wouldn't be easy for the corporations to pass on all taxes because it would make it easy for the competition to undercut their prices. Apparently today competition, the very foundation of market economy, isn't what it once was.

Also, if you think your argumentation through to the end you'd need to propose an abolition of all corporation taxes and also of income ztaxes for business owners. Do you really think this is a good idea?

 

[bilbal]

MBA-educated McCain supporter here.

Waiting for the Obama Kool Aid to wear off on you.

 

[Mistermj]

Okay, if that is so it means Obama proposes to take a little more from those profits made by simply letting your money work for you. Question for the resident Republicans - is this, too, an example of a socialist unfairly taking money from the hard-working wealthy?

It's not a little more...its a lot more.

And why do it at all...its already been proven when you raise the capital gains tax you end up with less revenues.

The only reason to do it is to score points and fan the flames of class warfare.

 

[Preussen]

It depends on where the 80k came from.

No, it does not. Even if they 80k are the profit from a former investment it would be taxed as that gain, not as the one in my example.

 

[bilbal]

BILBAL opines: The basic problem with Obama's socialist program is that no matter how much money he takes from the rich and gives to the poor, the poor will be giving it right back to the rich.

SH: Well then, there's therefore little reason for the Rich to have much issue with Obama's purported influence on upcoming tax structure.

Under McCain, they stay rich.

Under Obama, they stay rich.

Looks like the best strategy in the coming eight years is to be Rich and you'll not have much about which to worry.

Yes, the rich will be rich, but under which President will the country itself likely enjoy more tax revenue?

 

[bilbal]

No, it does not. Even if they 80k are the profit from a former investment it would be taxed as that gain, not as the one in my example.

Yes it does. And as usual, I will leave it up to you to use Google or Stupidpedia to figure out your mistake.