I posted this in another thread, but I think it deserves its own post:
Regarding Joe the Plumber.
See the video
here.
Did McCain speak with Joe the Plumber? If so, can someone please link to it.
If I understood Obama correctly, JoeP would only be taxed the higher rate on the profit over $250,000. So if I remember correctly and the rates were 36% and 39% (???), then
if JoeP makes $250,000- taxed at
36%, he pays
$9,000 If JoeP makes $280,000- he will be taxed for $250,000 @ 36% and $30,000 @ 39% = ($90,000 + $11,700) =
$101,700 If he makes $280,000 and is taxed at the straight 36% that Obama is proposing, he will be taxed
$100,800 That's a difference of $900.
And if you recalculate the first scenario as a "flat percentage" it comes to 36.3214% (instead of 36%). If that $900 is going to keep JoeP from opening his business ..... well, then JoeP probably needs a better business plan.
And of course these scenarios don't include the 50% reduction in health costs that Obama mentioned, nor does it include a $3,000 tax credit for hiring a new employee in the U.S.
Here's a handy chart:
| BASE | $250,000.00 | | - | | $90,000.00 | | 36.0000% |
| + | $260,000.00 | | $3,900.00 | | $93,900.00 | | 36.1154% |
| + | $270,000.00 | | $7,800.00 | | $97,800.00 | | 36.2222% |
| + | $280,000.00 | | $11,700.00 | | $101,700.00 | | 36.3214% |
| + | $290,000.00 | | $15,600.00 | | $105,600.00 | | 36.4138% |
| + | $300,000.00 | | $19,500.00 | | $109,500.00 | | 36.5000% |
| + | $310,000.00 | | $23,400.00 | | $113,400.00 | | 36.5806% |
| + | $320,000.00 | | $27,300.00 | | $117,300.00 | | 36.6563% |
| + | $330,000.00 | | $31,200.00 | | $121,200.00 | | 36.7273% |
| + | $340,000.00 | | $35,100.00 | | $125,100.00 | | 36.7941% |
| + | $350,000.00 | | $39,000.00 | | $129,000.00 | | 36.8571% |
Of course, it should also be said that I don't know what McCain would tax him, so maybe Obama's 36% (or 36.3214%) is still too high for Joe. I'm only commenting on Obama's tax difference between those under $250,000 and those over $250,000 as I understand it.