Joe the Plumber Eligible for Obama Tax Cut?

And under an Republican-sponsored plan to suppress votes in Ohio, JTP would have been purged from the voter rolls because his name was misspelled on his registration.

It's a bad sign for your party when your goal is for as few people to vote as possible. Republicans, take a hard look in the mirror. If you like what you see, you must be blind.

Joe the Plumber says:
- He's going to buy his employer's plumbing company
- Which makes over $250K
- So his taxes will increase under Obama's plan

Except that
- He isn't going to buy the company
- Which doesn't make over $250K anyway
- And his taxes would actually be lower under Obama's plan

Not to mention that his name isn't Joe, and he is not technically a plumber.

He should be a laughingstock, but instead McCain/Palin have made him a centerpiece of their campaign. He even speaks and takes questions at their rallies.

They must really think their supporters are idiots. And judging from the wildly positive reactions he elicits, maybe they are right.

This race is getting pretty ugly. The world's watching, and 84% say Obama for President. Why? Because his ideas are more likely to work in today's day and age! Economically he's right, by giving tax cuts, consumers are able to attin more goods and sercives, which drives commerce and business. To fund an enormous budget while saddled with debt... you must either borrow or raise taxes, but Obama's raising it relatively minimally(3%) on the more financially robust of Americans. Where is John McCain going to get the funds to service his budget, one that has spiralled out of control through the incumbent, George W. Bush?

In terms of foreign policy, the world has become a more level playing field. More countries are now armed with nuclear weapons while others are on the brink. The confrontational style that has pervaded current US foreign policy may prove ineffective in today's world, as presently the US faces forces possessing increased potency and resolve. Big stick policy won't work in today's world! We need a new type of diplomacy, one that reduces international insecurity and doesnt heighten it.

Pretty ugly, dirty and divisive race! Very unbecoming of the world's "example of civility". This is what has become of the socio- political state of the USA? Things have changed drastically, and not for the better either. A new brand is necessary, the world's future depends on it...

Sorry Josh - My post was deleted by ABC. Look up the taxfoundation online for answers.

And why do over 70% of Americans own homes when 40% of Americans pay $0 Fed Income Tax? And why are we in this mess? Tough questions?

alot of you talk about losing job with the obama plan what do you think is going on with the BUSH plan right now and for the last 8 yrs. LOST JOBS EVERY WHERE.. Bring in McCain and the same will happen more lost jobs.. we need a chage for the better not for the worst.. How are they going to punish the rich most rich people have CPA's that hide there money anyway.

When you drive out small business with tax punishments, the large corporations dominate the market. Just the way Democrats like obama want it, when they, for example, give tax breaks to oil companies. So much for the little guy.

You're all ignoring Obama demanding businesses make further "meaningful" contributions to their health plans above wht'a present now. You also ignore the increase in FICA. You also all ignore the AMT.

Obama's plan is a massive tax increase, and for a lot more people than he admits.

Already it's down to $150,000.

That's not where it would end.

"Let me see. A tax break for the middle class which would increase spending, grow the economy and help to raise people into the middle class so they could also add to the economic success is a socialistic idea."

It never works.

Jobs will be lost.

Let me see. A tax break for the middle class which would increase spending, grow the economy and help to raise people into the middle class so they could also add to the economic success is a socialistic idea. Right? But, a tax break for Exxon is what? That is not socialistic. That is what? Trickle-down. Of course, Exxon is going to make more jobs for the middle class. Then, with Exxon so wealthy, why are people being laid off in this economy? Do all these socialist-idea folks think that our tax system is socialistic? If you use their logic, of course it is. Tell us a better way. I know, no taxes. Starve the beast. It's the Republican way.

This is so silly... basically it all comes down to 2 points of view... the "trickle down theory" rep idea of economics and the "build from the ground up theory" dem idea of economics. I believe McCain chose well using "Joe the Plumber" as his example, who knows as well as a plumber what really trickles down....

The point is that Obama's tax increases WILL affect at least some small business owners adversely. I could use the "me first" attitude and say that I am voting for Obama because I personally would be a tax break from him. Instead, I am voting to put my "country first," and protect small businesses like these:

To the Canadian Observer:

Yes, that's exactly what I'm saying. I've been working this very schedule for 4 years now, my Wife started working the same schedule this year.

As I previously posted, it's nothing new to me, I've always had several jobs to ensure the financial security of my family. We work hard so our children can have opportunities we never had and so our financial security is rock solid when we retire. What about that is funny to you?

You see, my family isn't afraid to work to achieve a better life for ourselves and for our future security, I don't burden my fellow citizens with laziness. We don't sit around asking each other, why isn't life fair, nor do we believe laziness should be rewarded with socialistic tendencies.

As I previously stated, it's very simple, if you want it...go out and WORK for it, don't expect a handout.

It's a shame others don't share our view point on the ethic of hard work, if others did the greatest country on earth would be even greater.

At $200,000 for a single and $250,000 ceiling for a two income married couple, we may see 2009 as the year of divorces if Obama gets elected.

If Joe is making $250,000 a year then he is doing extremely well. I'm not shedding a tear for him. The average American makes a mere fraction of that. I'm sure his accountant will find plenty of nice deductions and tax shelters for him. So he'll be just fine.

Although Joe the plumber gave me a good laugh, "Just another "rich" worker bee" is pretty funny too.

According to that person, the couple works 14 hours a day and commute 3 hours for a total of 17, which leaves 7 hours to sleep, take a shower, prepare meals and eat. And here he is pretending he wants to provide for his children! Do you go by that schedule all year??? I mean common!

According to Obama's definition, me and my wife are 'rich.' Even though we work 13-14hr days and commute 3hrs a day. We work hard so that we won't have to in our 'golden years' and so we can provide our children the opportunities in life we never had. Until 5 yrs ago, I've always held at least 2 jobs and usually held 3.

We do not own a business we simply work VERY hard and take pride in our work. Neither of us ever got or took a handout from the government or anyone else, however both of us started out as the lowest paid government employees on the GS scale, we both started out as E1s in the military when we were 18 and after 22 years of combined military service, we've worked our way into becoming "rich" (Obama's definition not ours).

So if I understand Obama's tax plan, now were simply supposed give even MORE (we are already highly taxed as is) of our hard earned money to those who didn't/don't work as hard as we do? Why? If you listen to liberals, it's because "it's the fair thing to do," when was life ever fair? Where was my handout when I was living off of Raman noodles and PB&J sandwiches because we couldn't make the ends meet while we were in the military? We wanted more, we wanted a better life for ourselves and our children, so we simply worked HARDER.

America is the land of the free and home of the brave, it is what YOU make of it. It is NOT the land of entitlements, socialistic money transfers, or handouts. I do not begrudge my fellow American citizens a hand up, but never...NEVER a hand out. That just won't do.

If you feel you 'deserve more money,' then work harder and/or get another job. It's quite simple to me...

I'm watching the political action on CNN and I can't help laughing at people like Joe the plumber who keep complaining about having to pay more taxes for being successful when in fact small businesses have been rewarded for years with tax credits that normal families don't get. A lot of business owners take advantage of that every year and add everything they can think of to their "business" expenses so I certainly won't feel sorry for that kind of greedy Republican supporters.

As far as McCain's comment (on the last debate) about the Canadian health system goes, Canada spends less in average per person than the US and Canadian citizens' life expectancy is higher so go figure what that call to blind patriotism was all about!

This is very good explanation of Small Business Tax that was big discussion between Obama and McCain. Actually what Obama said is pretty true. McCain claims not true.

NOTE EXPLAINS WELL AMOUNT OF MONEY OVER 250,000 AND AMOUNT YOU ACTUALLY THE INCREASE ON. IS NOT FULL AMOUNT. READ WHOLE ARTICLE. WRITTEN BY EXPERTS MONEY NEWS

In speech after speech, presidential candidate John McCain hammers on the claim that his rival Barack Obama will raise taxes on many small businesses.

At the debate on Wednesday night, McCain said, "The small businesses that we're talking about would receive an increase in their taxes right now."

More typically he has said: "What [Obama] hasn't told you is that he would tax half of the income of small businesses in America," a line used in La Crosse, Wisc., last week.

Should small business owners fear for their wallets if Obama is elected? Not the vast majority, business and tax experts say.

To make its claim, according to a McCain spokesman, the campaign counts as a small-business owner any taxpayer who files a Schedule C, E or F - the forms used to report gains and losses from business ventures and farms.

Using that definition and citing IRS data, the campaign notes that "56.8% of total small business income is earned by businesses in the top two rates, which Barack Obama has pledged to raise."

It's true that Obama has proposed raising taxes on the top two income rates.

But there are three main problems with McCain's charge.
What is a small business?

First, it relies on a broad definition of what counts as a small business, including everyone who files a Schedule C, E and F.

But most people who file those forms don't run a business for a living: Those forms are also used to report income from freelance and consulting work, real-estate rentals, and most other non-salary sources.

For example, McCain and Obama both file Schedule C returns, thanks to their book royalties - but they hardly should be considered small business owners.

In 2005, there were 21.5 million Schedule C returns filed, according to the IRS.

A more realistic definition of small businesses turns up far fewer firms. The Small Business Administration estimates that there were 6 million small businesses in 2005, as measured by those with fewer than 500 employees and with staff on the payroll other than the owner.
Who pays?

Second, even using the broad definition of small business that McCain likes, very few owners would see their own taxes rise.

That's because the lion's share of taxable income comes from a small number of wealthy businesses. Out of 34.7 million filers with business income on Schedules C, E or F, 479,000 filers fall into the top two brackets, according to an analysis of projected 2009 filings by the nonpartisan Tax Policy Center.

The other 34.3 million - or 98.6% - would be unaffected by Obama's proposed rate hike.

That includes Joe "The Plumber" Wurzelbacher, whom McCain invoked nearly two dozen times at the debate Wednesday night to illustrate the plight of the average worker and small business owner.

"Joe wants to buy the business that he has been in for all of these years ... he wanted to buy the business but he looked at your tax plan and he saw that he was going to pay much higher taxes," McCain said.

In an interview afterward with WTOL, Wurzelbacher acknowledged that he'd still like to eventually buy the plumbing company he works for but that he wouldn't yet be hit by higher taxes.

"I want to set the record straight: Currently I would not fall into Barack Obama's $250,000-plus," he said. "But if I'm lucky in business and taxes don't go up then maybe I can grow the business and be in that tax bracket - well, let me rephrase it. Hopefully, that tax won't be there."

Few owners are that lucky in business. In a member survey conducted late last year, the National Federation of Independent Business (NFIB) found that only 14% of respondents said they had $200,000 or more in annual income.

As Tax Policy Center fellow Len Berman recently told Fortune Small Business: "Most owners of small businesses have small incomes."
What gets taxed?

Third, even if you're one of the rare business owners making enough money to be affected by Obama's proposed tax increases, you still won't see a big hike in your tax bill.

McCain's claim that Obama "will increase taxes on 50% of small business revenue" - the line he used in the second presidential debate - is incorrect because of how income is taxed.

If a business owner falls into the top bracket, that doesn't mean that all of his or her income is taxed at the highest level.

For example: If a small-business owner makes $210,000 in taxable income, he edges into the 33% bracket, one of the two top tax rates that Obama would like to raise.

But he would pay the higher tax only on the amount that exceeds the cutoff - in 2007, the two top tax rates applied to single filers with income of $160,850 or more and joint filers with income of at least $195,850. As a single filer, this business owner would see his federal taxes increase $1,475 under Obama's plan, which calls for raising the 33% tax rate to 36%.

"While Obama does favor raising the top two rates, the quote is not true because not all the small business income of those in the top two rates is taxed at the 33% and 35% rates," said Gerald Prante, a senior economist at the nonpartisan Tax Foundation.

The bottom line: McCain's claim only works by using an overly broad definition of what counts as a "small business" - and even with that definition, fewer than 2% of business owners would be hit by Obama's proposed rate increase. For those who are affected, the increase would be levied only on a part of their earnings, not all of them.

I am certainly not any kind of financial expert but I do know from personal experience that if you own your own business your tax breaks outweigh your taxable income. My husband owned his own construction busines up until a feww months ago. Every year are taxes stated that we made between 20-25 K per year. Due to the instability of our economy he couldn't rely on people needing home repairs so he got a job making 45K per year. We are barely making it on his salary. The point I am trying to make is that when you own your own business there are so many write offs with that business that your so called income is way less then what you actually make. The majority of people who make more the 250K per year own their own businesses and surely aren't paying taxes on all that they make because so much of it is a write off.

"Well, I mean, quite honestly, why should they be penalized for being successful?" Wurzelbacher asked. "I mean, that's what you're telling me. That's what it sounds like you're saying. That's wrong. Because you're successful, you have to pay more than everybody else? We all live in this country. It's a basic right. And Obama wants to take that basic right and penalize me for it, is what it comes down to." - Joe The Plumber

Just because you make a lot of money does not mean you are successful. President Bush before becoming President made more a quarter of a million a year and so far he has not been successful at anything. Some people make this much per year because their rich gandpa or daddy give them a huge salary and fancy job title but they may not do anything. Enron's corporate heads made huge amounts of money. Would Joe the plumber call them successful. What about the guy who was the CEO of Washington Mutual made close to 20 million in his less than 3 weeks as CEO before WaMu went belly up. Would Joe the plumber call him successful.

Joe forget being a plumber you should become a comedian.

Coming to a comedy club near you Larry The Cable Guy with special guest Joe The Plumber