Tax cuts for 95% of the people. Health care for 47 million uninsured. Just how is he planning to fund these?
initiatives ? The numbers just do not add up.
- Reagan '12Lv 61 decade agoFavorite Answer
Obama claims he is giving 95% of Americans a tax cut, however, about 45% of Americans don't pay anything in Federal Income tax. So how does Obama give 95% of Americans a tax cut when only 55% of Americans pay Federal Income tax?
Word play fact #1: Obama interchangeably uses the word Americans for working Americans and makes his "tax plan" seem like it will benefit more people. So it's 55% of Americans, not 95% of Americans, that will "benefit" from Obama's tax plan. But, will it really be a benefit?
So, now that we determined that only 55% will "benefit" from his "tax plan" let's analyze it further. Take the 55% minus the top 5% (which Obama readily admitted will be paying more in taxes so the wealth can be redistributed), and we are left with 50%. The 50% whose "taxes won't go up one penny" (according to Obama campaign ads) really will be paying more in taxes, and here's why:
Word play fact #2: Obama is going to rescind the Bush Tax Cuts. That means the Federal Income Tax will go from the current 35% up to 47%. Obama will then implement his "tax cut" by lowering taxes 5%, from 47% down to 42%. Is that really a tax cut? Our taxes will ultimately go from 35% to 42%, and that doesn't sound like a tax cut to me, just clever word-smithing. Obama's "tax cut" WILL hurt small businesses, something that small communities and hard working people cannot afford.
He will in fact use taxes to spread the wealth around.
- Jack XLv 61 decade ago
The uninsured currently get health care. It just ends up costing everyone a lot more than it should.
Here's how it works: You can't get routine medical treatment, so you let a problem get worse. End up in the ER. They CAN'T turn you away if it's life threatening. Now it's a more expensive treatment than what it would have cost if they treated you early. You get better and get a $30,000 medical bill. You can't pay it. The hospital tries to collect, then writes it off as a loss. The recoup some money by claiming the loss on their taxes, and adjust prices to factor in the profit loss from uninsured & non-paying patients. The government loses revenue due to the tax write-off and the hospital raises prices to maintain profits. Your insurance goes up, as do your taxes.
End result: We're all already paying for it, but it's haphazzard and inefficient currently.
- kozzm0Lv 71 decade ago
By doing what Republicans always assume the American people would somehow mind: raising taxes on the rich. Or more exactly, allowing the ill-advised tax cuts on the rich that Bush pushed through to expire, returning them to levels they were at in the prosperous, Clinton-led 90's
By ending the absurdly expensive and pointless military mission to save Iraq from the Iraqis, by generally recognizing that a nuclear country does not need to spend nearly so much on conventional military as we do and scaling back expenditures. The government health insurance will end up operating profitably as most insurance pools that big generally do, by streamlining procedures like medical record storage, and dramatically reducing costs.
It is really amazing how many people are trying to raise alarms about a comment like "spreading the wealth around." That's been an accepted role of government since FDR was President. What do they think Social Security, Medicare, medicaid, and the progressive tax system are all about? To the vast majority of Americans who make less than $250,000 a year and don't share in that giant half of the wealth owned by the top 1 percent, the idea of spreading the wealth around isn't gonna sound bad. It's a useless tactic. It doesn't help McCain either, every one of his tactics is reactionary rather than progressive, the nonsense about "spreading the wealth" and socialism only adds to that unattractive reactionary theme of his campaign. Most of us remember all too well a certain other president who used fear as a tactic in his campaigns.
- J-DoggLv 41 decade ago
How do you think the Iraq war is being funded right now? Or all the tax cuts we've gotten over the last eight years? How is it you're just now worried about where the money's coming from? If we stay in Iraq to the tune of another 10 billion a month where do you think that moneys coming from? If McCain wins, it will keep coming from China like it has under Bush. Talk about not adding up--he says he wants to stop that, but he's offered no plan cuts himself, his policies cost MORE than Obama's, and he wants to keep Iraq going indefinitely.
- How do you think about the answers? You can sign in to vote the answer.
- BullseyeLv 71 decade ago
Good question! but it is actually more fundamental than you stated. Presidents DO NOT have the authority or Constitutional power to raise or lower taxes or to pass any spending Bills.
Only Congress can do those things.
EDIT-- 4 out of 10 Americans pay ZERO INCOME TAXES! and many of these folks receive the Earned Income Tax Credit -- if they have children. Is this FAIR?
- 1 decade ago
By eliminating the excessive tax cuts and tax loopholes that are now given to big business and the upper 1% of the population and applying it to these programs, resulting in a net tax surplus. Why is it that the REPS can claim to be literate yet they never sit down and actually READ Obama's economic plan before they post as if they know the plan down to its last punctuation mark?
Don't bother, it's too late anyway. McCain has already lost this election.
- 1 decade ago
Closing loopholes that allow corporations to pay no taxes is a good place to start. I don't believe companies should be allowed to get away w/o paying anything while "Joe The six-pack-a-day plumber" pays their share.
Study finds that the majority of domestic and foreign corporations in the United States avoid paying federal income taxes.
Bush Policies Drive Surge in Corporate Tax Freeloading
82 Big U.S. Corporations Paid No Tax in One or More Bush Years
Trickle down economics does not work and will add to our deficit. I don't think our economy will grow when the top 1% receive an increase in their income that is 139.5% higher than the avg. American.
AVERAGE INCOME IN 2006 UP $60,000 FOR TOP 1 PERCENT OF HOUSEHOLDS, JUST $430 FOR BOTTOM 90 PERCENT:
EXTENDING THE PRESIDENT’S TAX CUTS AND AMT RELIEF WOULD COST $4.4 TRILLION THROUGH 2018
THE SKEWED BENEFITS OF THE TAX CUTS
With the Tax Cuts Extended, Top 1 Percent of Households Would Receive More Than $1.2 Trillion in Tax Benefits Over the Next Decade
- 1 decade ago
He will have to raise taxes e on personal income, inheritance tax, taxes all everything that we buy, capital gains tax, dividends tax. It has to come from somewhere. Lets not forget all the other spending he plans to do. 5% of the people cannot makeup for all this money. REMEMBER IF IT SOUNDS TO GOOD TO BE TRUE IT IS AND/OR BUYER BEWARE
- 1 decade ago
Bend over and smile, if you currently pay taxes Obama's coming after you to fund these things. He'll let the Bush tax cuts expire, which will increase taxes on a family making 42K about $2600/yr , then he'll pile more increases on that. Finally businesses will pass their tax increases on to the consumers.
By the way 40% don't even pay taxes so what they would get isn't a tax cut, it's WELFARE.
- jennyLv 71 decade ago
By playing hop scotch with tax $$$, and raising taxs of course, that
is the only way, but that does not mean the promises will be filled,
when were they ever filled. Corps. rule, he will not change that.