Posts Tagged ‘taxes’

Spreading a Wealth of Lies 2

October 28, 2008

As a follow-up to my previous post, here are Palin’s statements in Des Moines. Let us count the lies together.

See, under a big government, more tax agenda, what you thought was yours would really start belonging to somebody else, to everybody else1. If you thought your income, your property, your inventory, your investments were, were yours, they would really collectively belong to everybody2. Obama, Barack Obama has an ideological commitment to higher taxes, and I say this based on his record… Higher taxes, more government, misusing the power to tax leads to government moving into the role of some believing that government then has to take care of us3. And government kind of moving into the role as the other half of our family, making decisions for us4.

1 Only workers making over $250,000 face the possibility of higher taxes under Obama’s plan. 95% of workers will see a reduction or no increase of their federal income taxes. That is an undeniable fact.
2 Nowhere does Obama propose taking money from one person and giving it to another. As I explained previously, he is proposing a tax credit to workers for income and payroll taxes that they pay. All workers pay the payroll tax, so no one is getting someone else’s money: Obama is giving people back money that they themselves paid. This is probably Palin’s biggest lie. She goes so far as to suggest Obama’s going to come in with his gummint goons and take your furniture and silverware to give to “other” people.
3 Where in Obama’s record has he misused the power to tax? Nowhere. And guess what? His current tax plan calls for LOWER OR THE SAME TAXES for everyone not making more than $250,000 a year. For those making more than $250,000, they’ll see tax rates that they had in the 90s.
4 Oh no, it’s Married to the Government. But where is government making decisions for families? By giving families tax credits, Obama is giving them a choice to spend or save that money.

It seems that Palin is completely unable to make a statement without lying.

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Spreading a Wealth of Lies

October 28, 2008

McCain, Palin, Fox News, and many others are falling over themselves to claim that Obama is “spreading the wealth,” which makes him a Marxist. But sharing the wealth is hardly an uncommon idea, even among Republican presidents and wannabes. But let’s look at some facts, and let’s start with the frequent claim from Republicans that 40% of Americans don’t even pay taxes but to whom Obama would give money.

For these Republicans, that’s taking money from us and giving it to them. But the fact is that workers don’t just pay income taxes but pay high payroll taxes, which is something all workers all have to pay, except for those earning over $100,000, which is the cap for payroll taxes. Republicans ignore these taxes, which increased for the majority of Americans under Reagan.

Obama has planned a “Make Work Pay” tax credit of $500 for 95% of American workers. While 40% of workers might not pay federal income taxes, they do pay payroll taxes. In fact, while the federal income tax has dropped for lowest quintile, payroll taxes have increased (from 5.3 in 1979 to 8.3 in 2005).

So, Obama is not giving money to people who don’t pay taxes: he’s giving a tax credit to workers who do pay federal taxes. Let’s put some numbers to this now. A worker makes $25,000 a year and pays no federal income tax because of the Earned Income Tax Credit. Still, that worker pays more than $2000 in payroll taxes. For that worker, Obama offers a $500 tax credit, but because she doesn’t have an income tax, she gets a check for $500, offsetting a portion of her payroll taxes (which she still has contributed more than $1500 after the tax credit).

This is hardly a Marxist redistribution of wealth because the worker still pays federal taxes, and the worker is getting back money she paid to the federal government. She’s getting back her money, not your money, not money she didn’t earn.

So, when Palin and her ilk lie about Obama taking “your money” and doing what he wants with it, keep in mind that not just Republicans pay taxes. Everyone does. And Obama is trying to give some of that money back to 95% of taxpayers.