Joe the Plumber Eligible for Obama Tax Cut?

Eric - San Francisco

Where did you get your figures from?

The quote from Obama is correct but the idea that everyone making 75k a year or more is going to get a tax hike is false. the people making 75k to 250k per year will not get a take hike their taxes will remain the same as they are right now. I fall in this range and I looked it up under neither Obama or McCain will my taxes go up or down. Obama's tax plan has always been to return the tax rates to what they were under Bill Clinton and now McCain is trying to say that is what his new plan is. who is lying? I don't know. But I do have a hard time believing McCain is going to use the same tax plan that Clinton did. Like I said I don't know who is lying, though.

Plaese let me know what your source is though eric.

McCain has stated as President he would never sign a bill with "earmarks". The Wall Street bailout bill had many "earmarks", and McCain endorsed and voted for this bill. What will McCain really do as President when a similar emergency bill containing "earmarks" awaits his signature? Do you really think McCain can "maverick" his will on your state Senator or Representative for your pet project?

Don't be fooled. As recent as July Obama said he would provide a tax cut to those making less than $75K. Maria Bartiromo on CNBC's "Closing Bell" asked, "Who should pay more and who should pay less?" Answer: "I would not increase taxes for middle class Americans and in fact I want to provide a tax cut for people who are making $75,000 a year or less,'' he said.

That's a slick way of saying everyone over $75K is going to take a tax hike. When's the last time a democrat in the white house didn't raise taxes? That's the power base. Run for election with promises of providing social benifits and re-election with promises of increasing those benifits. Simple.

An enormous percentage of taxes are payed by a minority of Americans: 1% Pay Greater Dollar Amount in Income Taxes to the Federal Government than the Bottom 90%

The Top 1% of taxpayers pay 39% of all taxes.
The Top 5% of taxpayers pay 50% of all taxes.
The Top 25% of taxpayers pay 86% of all taxes.

The evil Bush tax cuts look pretty good for EVERYONE. The guy making $30K in fact got almost an extra 1.5 years of annual salary over the past 8-years and that's significant.

After Bush Tax cuts
Single making 30K - tax $4,500
Single making 50K - tax $12,500
Single making 75K - tax $18,750
Married making 60K- tax $9,000
Married making 75K - tax $18,750
Married making 125K - tax $31,250

Reversion to pre-Bush tax cuts:
Single making 30K - tax $8,400
Single making 50K - tax $14,000
Single making 75K - tax $23,250
Married making 60K - tax $16,800
Married making 75K - tax $21,000
Married making 125K - tax $38,750
About a 2x increase in taxes.

BTW.
I studied electrical engineering.

these morons dont have a clue what a BSEE degree is... but i do. ;)

If Joe's profit is 278K a year, his monthly net income is almost 17K and the tax he would have to pay more a year with Obama's plan is short of $800 -- or $2.30/day which is about the cost of a latte. I think Joe can afford sharing a latte with a friend or customer if he is making this kind of money!

If Joe invests 10K a month of his net of 17K, he can retire at age 45 with 2 million in the bank -- or wait until he is 65 with 12 million in the bank.

I would say, with or without the $800/year in increased taxes, Joe is the American Dream.

What I have heard is that Joe's potential business is making more like 130K a year in revenue--not net profit and I assume he has expenses. In any event--Joe the Plumber will get to keep more with senator Obama's tax cuts than he would under McCain.

Even if his revenue was 278K, this would be true, because of other tax cuts and the deductions he can make.

Joe is misinformed and we are being mislead, and the lack of critical journalism is bad.

I make less than 250,000 a year. I want the Obama tax breaks. I'm more interested in getting the extra money to pay my bills and get out of debt than in freak-outs over philosophical economic systems by people who sound like they have lots of time on their hands and don't need a tax break. I don't have that luxury. Obama is definitely in touch with me. I like the idea of some extra money in my pocket and who knows maybe after I pay my bills I might be able to afford some of those widgets the people with businesses making over 250k are selling, right now I can't. The entire year I've bought one new dress and it was $20, so cheaply made it's already falling apart, luckily I can sew, and apparently lots of people are in my situation because retail sales are down and look bleak even for the holiday season. And right now too much of my money is going to my medical bills getting two of my prescription pills (with insurance) costs me $70 a month, if I didn't need them I wouldn't take them. I tried skipping a week once and ended up missing two days of work that week. Obama looks like he'll do right by me on health care too. I am voting Obama all the way.

Joe can join Sarah Palin in the ranks of McCain's caracitures highlighted in the 2008 presidential election.

McCain can pick 'ordinary Joe' citizens as well as he can pick vice-presidents.

Joe does not seem to have learned what socialism is, capitalism on the other hand is a system where our government is responsible for supporting a safe and reliable economic, social and political system, the more it is this way, the more opportunities we have, the more opportunities we have the richer we have the potential to become, the richer we are, the more responsibility we have to contribute to the system that makes it possible. There something very basic about paying taxes on what we are able to make based on a stable system that allows us to do so. Somehow in the process of building a taxation system it has become acceptable that those who benefit the most from the system, those who make the most money off of it, are somehow doing the rest of us below a big favor, while people like Joe the Plumber and so many millions of us put in the 10 to 12 hours a day to build the wealth for the nation.

I am totally glad that this example was brought up as it has raised an issue that needs to be discussed, this country is suffering an economic depression at this point in our history because the people who make it run daily have been left out to dry in the sun while the rich control what we hear is good and bad, it is time to stop that, in this election, we need to vote in our own interest and on that point, Joe is right, it is through good information and analysis of facts that we will do so. We have not done this in previous elections and it is time to get smart.

Have you seen all the news on Joe The Plumber today?

First off, turns out Joe doesn't have a plumbers license, nor does the company he works for/wants to buy. Both of which are required in his County -

In addition, he has two tax liens against him - one for $1182 and a second for $1261, both dating back to early 2007. Owing all those back taxes and possibly getting his company shut down, he needs those tax breaks he'd get under Obama's plan more than ever!

Boy, McCain sure knows how to pick a winner when it comes to GOP heroes (and VP running mates)!

light headed Joe

Well, I was only saying "give it up" on that one argument. Of course you shouldn't give up on your candidate. If you agree with John McCains stands on the issues, then you should definitely vote for him. That's how democracy works.

light headed Joe: "Joe the plumber stated quite openly that he feels that the Obama tax policy directly attacks his incentive to succeed."

And everything Joe the plumber says is automatically the Truth? Apparently Joe isn't even making that much.

If you were starting a new project where you expected to make $100,000, would you give up on it completely just because you could only make $97,000?

Everyone pays more taxes as you make more. When I got a raise from 28K to 32 K, I not only paid more money, but also a higher percentage of taxes because I was in a new tax bracket. Earn more, pay more. The economy won't survive if we dont do this. If not everyone will fall into another depression together. Get over yourselves and pay the taxes 5% group.

It has been said, but for those who think that a higher tax rate is going to stop someone from buying a business or expanding, you don't know jack about taxes.

A person making over $250K pays the same rate on the first 40K as someone who only makes 40K, the same rate on the next 60K as someone who makes 100K, and so on. The rate increases only on the dollars above certain points.

That means that someone making 250K would not pay 39% on all of the 250K, only on the amount above 250K. Thus if Joe or his business were to make 278K (now admitted to be completely false), the taxes at a 39% rate on 28K would be $840 more than at a 36% rate, or $1680 more than a 33% rate. That's per year - and that doesn't include Obama's $1K credit.

Tell me that a person making $278K paying $680 more per year is some big bad socialist handout.

You have your choice - no tax cuts for the real middle class, bigger deficits, or letting people who won't even miss that $680 shoulder just a little bit more of the burden.

I am so tired of ignorance and people who don't understand how taxes work spouting off talking points that are not even in their own best interest. Let's get educated and be reasonable and responsible.

The Joe thing never added up - it is impossible for the higher tax rate to preclude either an individual or a business making that kind of income or profit from expanding or purchasing a business. The amount of taxes is just too small to make a difference if the business is worth having. Now we start to get the truth - it was all a setup, a red herring, a lie.

MLE says "I am quite well off, nevertheless we are still getting a tax break under Obama (even though we don't need it"

Nice.

jock59801 says "Nobody's "incentive to succeed" is being taken away. Give it up."

I guess Jock is missing the story. Joe the plumber stated quite openly that he feels that the Obama tax policy directly attacks his incentive to succeed.

Now, on your give it up phrase, the democratic machine would very much like us all to give it up. You might try calling me some names or threatening me. Those seem to be the current democratic techniques. I will never vote democratic again - and yes, I would benefit from the Obama tax pander.

To tax more because you make more is socialistic. If the candidates were to say a flat tax of 10% and eliminate deductions, it might even be more fair.

Critisize him all you want but Joe makes sense.

To CLabs:

I live in the DC suburbs. I make about 85k and my wife makes 90k (175k combined income). We have a $650,000 home. By all accounts, this is a fairly good salary, probably considered slightly above middle class, even in VA. Even given the bush tax cuts over the past 8 years, we will STILL see a lower tax burden under Obama's plan. And guess what? We currently pay a lower amount of taxes, by percentage, than I did 6 years ago making 48k and renting. Even on my small scale, it's obvious that the more you make in this country, the more opportunities you have to take advantage of loopholes in the tax code to lower your payments. At the same time, we're now better able to financially absorb the income tax burden placed on us than we were back then. The multimillionaires in this country have business and investment tax shelters that practically guarantee that they pay a fraction of the tax bracket in which they're actually slotted. A $5 million earner with a good tax attorney will pay a far lower percentage of taxes than a guy trying to make rent on his $38,000 salary.

Distribution of wealth? Not even close!

Guys, take your adjusted gross income and plug it into the Tax Plan Calculator to see if Obama's plan would benefit you.

MLD, besides you math be insanely off, you are describing me and my wife to a T. Fortunately, I am quite well off, nevertheless we are still getting a tax break under Obama (even though we don't need it -- between us, we pay about half the taxes you suggest). Just one of the many reasons I support him.

MrUniteUs - you cannot or are unwilling to see that Joe the plumber thinks of over taxing one segment of the country is unfair and counter productive.

Joe gets it and he is one who would benefit from the pandering scheme by Obama. It sounds like a line Hugo Chavez would put out there - 95% of the people will see no tax increase. There is no thought of why or to whom that money is going.