Saturday, September 27, 2008

John McCain wants to raise my taxes!

If you aren't paid much, you'll do better under Obama than McCain (here). I know this is all to be taken with a grain of salt, but according to the site's calculator I'll keep between $600 and $1000 per year extra if Obama is elected than I will if McCain is elected. That's before we factor in the increase in taxes if McCain taxes health insurance. (Of course, if health insurance is taxed, chances are your beloved (and not so beloved) contingent faculty are losing their coverage. Financial pressure will likely lead to employers dropping coverage for their employees and the $2500 tax credit I'd get from McCain won't cover a year's worth of health insurance. Borrowing against future paychecks already, that means no health care. I know that I'll have to drop coverage and I know there's lots of folks like me who'll have to do the same.)

The important thing to keep in mind is that if you're pulling down between $227,000 and $603,000 per year OBAMA WANTS TO RAISE YOUR TAXES!!!!!! by $12.

9 comments:

lt.milo said...

http://www.american.com/archive/2008/august-08-08/the-folly-of-obama2019s-tax-plan

look a little deeper

Clayton said...

lt. milo,

According to one of the article's authors, Alan Viard, "We repeatedly make clear that Obama would cut taxes for the poor and the middle class". I'm in that group. Increasing the marginal tax rate might create a kind of disincentive for me to try to get a job with higher income (but, as a matter of fact, not enough for me to actually sit where I am), but it won't raise my taxes. I'll pay less. McCain will tax my employer for providing health care, which means they'll either stop providing health care, hire fewer of us, or take it out of our salaries. I won't be able to afford health care if my employer doesn't provide it and I'm given the $2500 McCain tax credit unless I put it all on black and get lucky.

exapologist said...

Reading an article by a magazine produced by the American Enterprise Institute is to do something with respect to evaluating Obama's tax plan, but whatever it is, it is not to look deeper.

Clayton said...

Zing!

lt.milo said...

All I am saying is that there is much more to viewing a tax plan than simply calculating the amount you will pay when he is in office.
On to your point, your employer certainly won't make you pay your health care bill. As to hiring fewer people, again, there are far more issues to look at concerning employment rates. It just isn't that simple.

Clayton said...

lt. milo,

Agreed on your first point. That's why I said that this was all to be taken with a grain of salt. What I don't see is how the point you made about marginal tax rates negates the point that I made that under Obama's plan I'll pay less in taxes. It's true that under Obama's plan as my income increases the rate at which my taxes increase will be greater than they would be under McCain, but this doesn't matter to me. If I had breathing room, I wouldn't mind paying taxes at a higher rate. The problem is that given my personal finances, I have no breathing room. I'm not alone in this.

As for the second point, it's true that my employer won't make me pay for my own health care. What my employer will have is a significant incentive to either pay me less salary, cut health care and give me greater 'freedom' in picking a plan, or higher fewer people. If there's some fourth way of dealing with these sorts of financial pressures, I'd love to know what you thought they were. Whatever they are, they'll likely be bad for people like me (i.e., people who make crap wages but do enjoy employer provided healthcare).

lt.milo said...

I don't understand why you are against controlling your own health care. Greater control in the peoples' hands only means more competition and lower prices. I think I am confused by your statement, "I won't be able to afford health care if my employer doesn't provide it and I'm given the $2500 McCain tax credit unless I put it all on black and get lucky." please explain.

Clayton said...

I'm not against controlling my own health care, per se. But, even with John McCain's tax credit, I'll have to go without health care unless they can bring the cost down below $2500 per year. That won't happen. So, I'll have to go without.

Greater control in the peoples' hands only means more competition and lower prices.

Maybe it does (although health care is a tricky commodity to price), but the question is not whether the price of health care will drop (holding fixed the quality of the coverage). The question is whether it will drop enough. If you can show that it will drop below $2500 with McCain's plan and the elderly and those with preexisting conditions won't be screwed when employers are pressured to stop providing health coverage, I'll be impressed.

Until then, I'm not yet seeing the argument. Your argument seems to be it's better for those of us who now receive health care for our health care to be taxed and for us to receive tax credits that are less than the value of our present care. That's not obviously a gift I should be thankful for.

lt.milo said...

I understand where you are coming from. As a college student, my parents still pay for my health care so I don't know the current rates. I would imagine that health care companies would try to meet $2,500 though, if only because they know that people won't pay more than that. Then the competition would stem purely on how much coverage you get for that amount. Employers wouldn't be paying for your insurance so wages would probably increase too. Of course I am merely speculating when I say this, but I think it makes sense. I guess we won't ever know who is right considering we only get one of the candidates.