Can you say disaster? If history has shown us anything -- it's high taxes kill the economy (as if it needed more pain). Obama was breastfed on communism. Classic redistribution of the wealth.
This is typical leftist thinking. Penalize the producers. Demonize success, exalt failure. Punish achievers, reward underachievers. Folks that take risks, start small businesses, create jobs, create wealth should not be targeted in a troubled economy, they should be rewarded, incentivized.
"I swear -- by my life and my love of it -- that I will never live for the sake of another man, nor ask another man to live for mine" (Ayn Rand, Atlas Shrugged).
This is a form of slavery.
New York tax filers reporting more than $375,000 a year in earned income may end up paying nearly 60% of their wages in taxes to the government under a Barack Obama presidency, economists who have analyzed his plan said.
The Democratic presidential candidate is proposing not only raising the federal income tax, but also adding a Social Security tax for those Americans earning more than $250,000 a year. For New Yorkers, that could mean that if the current Social Security rate is applied, the marginal tax rate, or rate on every extra dollar earned, could rise to 58%.
Two income couples whacked.
"This is a very eye-popping number," a resident scholar at the American Enterprise Institute, Alan Viard, said.
Some observers said that raising taxes at a time when the economy is teetering on a recession could exacerbate the economic woes.
"If the economy remains soft through next year — and it seems unlikely that it will be robust — it would be a very bad time to raise taxes of any sort, but particularly to raise them in this way," a professor who teaches federal tax law at Yale Law School, Michael Graetz, said.
Mr. Obama is proposing to raise taxes on capital gains and dividends by two-thirds, moving the rate up 10 percentage points to 25%. When New York State and City taxes are added in, the tax rate would be 33%. In comparison, the tax rate for capital gains and dividends is currently 22%; this would continue under Mr. McCain's plan, though some analysts say that if he won the presidency a Democratic Congress might maneuver him into an increase in these taxes, or pass an increase over his veto.
As for the estate and gift tax, Obama is proposing excluding anyone with less than $3.5 million, and charging a tax of between 15% and 45% for anything over the limit. McCain is proposing a $5 million exclusion and a flat 15% tax rate for anything over this limit.
The candidates' tax plans reflect their philosophical differences, economists and political analysts said.