Big speech and endorsements today? Thoughts?
text of the speechMissed it. Any links or articles about it?
“The choice in this election is stark and simple,” McCain said. “Sen. Obama will raise your taxes. I won’t.”
The GOP standard-bearer, however, said his plan would get the economy back on track and balance the budget by promising to make the government “a catalyst for growth and good jobs.” He blamed Congress and the Bush administration for letting federal spending get out of hand.
“This Congress and this administration have failed to meet their responsibilities to manage the government,” he said. “Government has grown by 60 percent in the last eight years. That is simply inexcusable.”
McCain said he would freeze most federal spending and review all government programs to eliminate waste.
Hard to make a case that McCain is Bush's 3rd term
when he openly attacks it.
but he wants to keep Bush's tax cuts.
hard to see how he's going to balance the budget in his first term.
they expire.
unless congress, extends them.
do you thing the new congress will extend them ?
or perhaps, something for low and middle income tax payers ?
whether or not he will be successful with what is shaping up to be a heavily democratic new congress remains to be seen.
what are the odds?
as a percentage, I would put it at less than 2 %
You seem to have faith in this Congress. I don't.
At least 15 years to commercial viability of clean coal plants, is the figure I've heard. The process is still very expensive, the technology is thus far much more effective at reducing sulfur emissions (good for acid rain) than carbon emissions (not so good for global warming), and even if carbon captures were drastically improved, finding a safe place to store them afterwards remains a major problem.Deos anyone know where we are in the research for finding a way to make coal a cleaner energy source?
$2500 per year for individuals and $5000 for families, in the form of a refundable tax credit (better have enough to get you through the year first!)--which grows at the rate of inflation, not the more-than-triple-that rate of healthcare. Well, yes, I have to imagine this would be attractive to many small business owners, because probably many younger, healthier, middle-income workers would opt for outside coverage in that case. That would drive up premiums for those who still need employer-provided insurance, though.Is McCain correct that the burden of health care for small businesses could kill them? Does his idea make sense to offer 5,000 a year to those who do not have health care so that small businesses do not get crushed?
From the businesses' POV, I'd certainly think so, but I wonder whether the government can afford an immediate-full-cost-deduction policy.Does the first year deduction of new equipment and techology make sense to help American businesses modernize?
Yes, although there's nothing unique about this one; it's basically just a renewal of what already exists, and was/is part of pretty much every candidate's platform.What about the research and developmen portion? Does this make sense?
I was at a green energy conference at the start of the year and apparently not very far, although geosequestration (pumping CO2 emissions from power plants into permeable rocks locking them away for the forseeable future) has the advantage that the means of energy production already exist, there is still a lot of the resource left and there is a big industry with vested interests in avoiding governmental restrictions.Deos anyone know where we are in the research for finding a way to make coal a cleaner energy source?
Is McCain correct that the burden of health care for small businesses could kill them? Does his idea make sense to offer 5,000 a year to those who do not have health care so that small businesses do not get crushed?
Does the first year deduction of new equipment and techology make sense to help American businesses modernize?
What about the research and developmen portion? Does this make sense?
an article from the LA Times about Obama's economic platform, which unsurprisingly levels the same basic criticism being leveled at McCain's--we simply can't afford this, and most of it will wind up getting Swiss-cheesed in Congress for sure.
Obama's staff thinks that ending the Iraq war would free up money -- at least $90 billion a year -- that could be redirected to the new government programs. But it is unclear when that would occur. Obama has not given a clear date by which the Iraq war might end. On Thursday, he said he remained committed to withdrawing combat troops in 16 months. At a debate in September, he would not commit to pulling all U.S. troops out of Iraq by 2013.
Some budget experts say even a speedy end to the war would not give Obama much money for new programs.
"You cannot justify a longer-term commitment to a program based on a one-time saving on the war in Iraq," said Stuart Butler, who studies domestic policy at the Heritage Foundation, a conservative-leaning think tank.
In addition, replenishing the military and rebuilding Iraq and Afghanistan are certain to become expensive priorities once the fighting stops, said Alice Rivlin, who directed the Office of Management and Budget for several years under Clinton.
"Savings from the Iraq war will not be all that great," she said.
Also complicating his plans, Obama would inherit a budget deficit projected at more than $400 billion.
http://www.johnmccain.com/Images/Issues/JobsforAmerica/briefing.pdf
McCain Policies Will Support Reasonable Economic Growth: Small business is the key to job growth.
Small business will benefit from:
• Low individual tax rates – sole-proprietorships, partnerships, landlords and others are taxed under the
individual income tax.
• Access to capital from low tax rates on dividends and capital gains.
• Minimizing expensive mandates – such as those for health insurance and pro-union initiatives like
card check.
• Enhancing international competitiveness to keep jobs here; not abroad.
o A lower corporate tax rate.
o Improved investment and research incentives to ensure that workers have the most modern
technology.
o Bringing the budget to balance, reducing federal borrowing, and controlling spending to
reduce the burden on the economy.
Obama's economic policy speech
Under Senator McCain’s economic plan, Exxon Mobil – a company that recently reported the biggest profit in history – would get $1.2 billion in tax breaks, while less than a quarter of the benefits would go to the middle-class. What’s worse – he has no concrete plan to pay for these tax breaks, so his policies would actually add more than $2 or $3 trillion to the national debt over the next decade and weaken our economy even further. If this sounds familiar, it’s because it’s exactly what George Bush has done for the last eight years
Obama's economic policy speech The second step in my agenda is to help provide economic security for families who’ve been dealing with skyrocketing costs and stagnant wages for years. I believe it’s time to reform our tax code so that it rewards work and not just wealth. So when I’m President, I’ll shut down the corporate loopholes and tax havens, and I’ll use the money to help pay for a middle-class tax cut that will provide $1,000 of relief to 95% of workers and their families.
An argument against Obama's tax plan
By GROVER G. NORQUIST | 7/11/08 4:58 AM EST
The Tax Policy Center and the Barack Obama campaign used some sleight of hand this week in Politico. To quote Eric Tolder of the TPC, “Most small-business people, like most everyone else, are not really high-income.” While this is true, it completely and totally misses the point.
Let’s start with the definition of a “small business.” Most will tell you that small-business income constitutes income derived from sole proprietorships, partnerships and Subchapter S corporations.
The conservative argument (and that of the John McCain campaign) is that Obama’s stated plan to raise taxes on households making $250,000 or more in income is a tax increase on small business. The simple answer to this dilemma can be found in the IRS Statistics of Income Bulletin (Table 1.4, for those who are interested).
So what do the data say?
In 2006 (the latest year available), $706 billion of such income was reported to the Internal Revenue Service. Of this, about half was reported by households in the top marginal income tax rate. Interestingly, two-thirds of this income was reported by households making $250,000 per year or more — the very same households that Obama wants to increase taxes on.
The Obama campaign maintains that the number of small-business owners is what’s important. Economists know what matters is the tax rate that’s applied to the bulk of small-business income. Make no mistake about it: Obama’s plan to raise taxes on households making more than $250,000 will raise taxes on most small-business profits in America.
What type of tax rate are we talking about? Currently, S corporations face a top tax rate of 35 percent, while sole proprietors and general partners face a tax rate of 37.9 percent (since they’re responsible for paying both income tax and the Medicare component of the payroll tax).
Under Obama’s plan to let the scheduled 2011 tax rate hikes occur, and his plan to raise the self-employment tax on those making more than $250,000, the S corporation rate would rise from 35 percent to 39.6 percent. The sole proprietor and partner rate would rise from 37.9 percent all the way up to a staggering 50.3 percent. Many Democrats in Congress have proposed making all small businesses (including S corporations) pay this 50-plus percent rate. A small business tax rate that high would be the highest marginal rate faced by them in nearly a quarter-century.
What would a world look like where two-thirds of all small-business income would be taxed at a 50 percent rate? The economic law that “taxing something more and getting less of it” would apply. Fewer Americans would be interested in opening or expanding small businesses. Tax evasion and legal tax avoidance would spike, as tax shelters would once again become a booming industry. Since small businesses create a majority of jobs in America, Main Street closing up shop will have a direct impact on the family budget, as well. Plants and equipment will go unused. Despite the misguided opinions of static scorers in Washington, federal tax revenues will likely decline as the economy staggers into a full-on recession.
What’s the alternative? One place to look is the optional alternate tax system originally proposed by Congressman Paul Ryan (R-Wis.) and now endorsed by McCain. It would give households (including those with small business income) a choice between the current tax code and one with a top rate of 25 percent on all income over $100,000. This would have the beneficial effect of lowering the tax rate on most small-business income by 10 percentage points. Small businesses haven’t faced a tax rate that low in quite some time and would be likely to respond with the creation of new businesses and more investment in existing businesses.
The McCain small business tax plan doesn’t end there. For those businesses that are organized as conventional corporations, the top tax rate would fall from 35 percent to 25 percent, the European average. For all businesses, technology and equipment — which now must be slowly “depreciated” over many years — would be immediately expensed in year one.
Stepping back, voters and policymakers should ask themselves whether they want two-thirds of small business income taxed at a 50 percent tax rate or if they want nearly all small-business income taxed at a 25 percent tax rate. They should ask themselves whether it’s healthier for small businesses to write off a computer over six calendar years or to simply write it off in year one. To America’s small business sector, the answer is obvious.
According to the Treasury Department, nearly 78% of taxpayers report some business income. But those numbers go far beyond just those running their own businesses. The Treasury is counting a huge number of people including anyone who offers space for rent; reports income from consulting, freelancing or speeches; or who works in a partnership, a structure used by many law firms, accounting houses and hedge fund managers.
According to the Tax Policy Center, only 1.4% of people defined by the Treasury as small-business owners are in the top two tax brackets and could be subject to Obama’s tax proposal. In fact, under the Treasury definition, both John and Cindy McCain qualify as small-business owners. John McCain reported more than $88,000 of business income from his book sales, according to his 2007 tax returns, a small percentage of his total $405,409 income. And his wife recorded more than $4.5 million of her roughly $6 million total income as business-related in 2006.
TIME - Grover Norquist's Fuzzy Math
Grover Norquist today comes up with a somewhat baffling defense of Carly Fiorina’s claim that 23 million small businesses would see tax hikes under Obama’s tax plan. Grover argues this: "In 2006 (the latest year available), $706 billion of such income was reported to the Internal Revenue Service. Of this, about half was reported by households in the top marginal income tax rate. Interestingly, two-thirds of this income was reported by households making $250,000 per year or more--the very same households that Obama wants to increase taxes on."
Using this argument to say most small businesses would see a tax increase is disingenuous. Grover’s right in saying that there are many “small businesses” who make a LOT of money (remember, Tiger Woods falls into this category). Small businesses are generally considered three groups: sole proprietors (schedule C), sub chapter S and partnerships. Most people think of partnerships are mom and pop running a soda shop. But in America, partnerships also include private equity groups and hedge funds--so Jamie Simons who made $1.7 billion last year is actually considered a small business.
In 2006 only 2.6 million households filed tax returns in the highest two brackets taxed at 33% and 35%--it is impossible to say, therefore, that 23 million small businesses are going to get taxed at a higher rate. It is irrefutable that in terms of sheer numbers only a few hundred thousand of the 23 million small businesses make more than $250,000 a year--and those few hundred thousand make the bulk of profits earned by “small businesses” last year (I'd bet most of them have a NYC zip code). All Grover is doing here is telling us that there’s huge income disparity among small businesses as there is among all Americans. Yes, two-thirds of small business income would see a tax hike under Obama: but the vast, vast majority of those few hundred thousand hedge fund magnets and golf stars can afford it (and, ironically, many of them would actually get taxed at a lower rate because of carried interest, but that’s another debate).
Incidentally, this is the article from Politico that Norquist was referring to: