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Monday, October 20, 2008

Math Lesson

(Taken from my friend, Patrick's blog)

There was an interesting table in this week’s edition of Parade magazine. (I know, most of you only open that little insert to read the inane questions sent in to Walter Scott’s Personality Parade.)

But this particular table compared the tax plans of Barack Obama and John McCain to show how much you’d save depending on whose plan became reality. I’ve received several chain emails lately from rabid McCain supporters promising me how much Obama will raise my taxes.

I’m going to go out on a limb and speculate that most of the people who are forwarding the emails don’t fall into the income category that would make them pay more, and I’ll even speculate that most of the people who stop by here to read this blog don’t fall into that category, either.

But here’s a partial listing from that table:

If you make less than $19,000 income (the bottom 25% of earners):

Obama will save you an average of $567.
McCain will save you an average of $21.
If you make between $19,000-$37,600:

Obama will save you an average of $892.
McCain will save you an average of $118.
If you make between $37,600-$66,400:

Obama will save you an average of $1118.
McCain will save you an average of $325.
In fact, you don’t start saving more with McCain’s plan unless you make more than $111,600, and even then, the difference in savings is an average of $449.

If you are fortunate enough to be in the top 5% of earners, meaning you bring home more than $227,000 a year, McCain will save you lots of money, while Obama will make you pay more…sometimes only a little more, depending on how “elite” you are payroll-wise.

The unfortunate thing about the whole “trickle-down” theory of economics is that giving tax breaks to the wealthy means expecting the top 5% of earners are carrying the entire economy. Give them all the breaks, the theory says, and they’ll help everyone else.

When was the last time you got a big handout from the wealthy? When was the last time some millionaire got a big tax break then decided to write you a check to help you pay your bills?

I have nothing against millionaires, of course. If there are any reading this, I’ll be glad to take any amount they’re willing to send. But I think that most of us know that the average rich person is rich because he keeps a lot more than he gives.

May that happen to us all one day.

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