Thadius -> RE: "In my opinion..." (9/11/2008 3:13:41 PM)
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ORIGINAL: rulemylife quote:
ORIGINAL: Thadius quote:
As far as your first point, I see the opposite. The threads here posted by the those favoring conservative viewpoints almost invariably come from the Republican talking point of the day. While we are all guilty of it to a certain extent, it always amuses me to watch Fox News in the morning and then see the same arguments posted here later in the day, nearly verbatim, almost as if the poster is reading from a script. As far as your second point, I'm not sure what you are trying to say because Obama has proposed tax cuts. Here are the comparisons: washingtonpost.com/wp-dyn/content/story/2008/.../ST2008060900950.html - 134k - Cached Your comments about tax credits have me the most confused. Yes, he has proposed credits, as has John McCain. . Ask any accountant which he would choose and you'll invariably hear credit. A tax credit is a dollar for dollar reduction on what you owe, not a reduction in the amount you pay on. Let's say one candidate offers a $1000 tax credit and the other offers a tax deduction in the same amount. If you take an example using some easy numbers, say a $10,000 gross income at a 10% tax rate you pay $1000. The $1000 deduction would reduce your adjusted gross income to $9000 and you would save $100 on your taxes. The tax credit would apply directly to the amount you owe on your taxes meaning you have a $0 balance. All of which I'm sure you know. So unless I misunderstood, your argument is somewhat disingenuous. There is a huge difference between a tax cut and a tax credit. With a tax cut the rate at which one is taxed is reduced, and in the case of working folks that have their taxes withheld, that means less is withheld each payday, resulting in more realized dollars each payday. Whereas, a tax credit only applies once one files their taxes, meaning they continued to be taxed throughout the year at the higher rate and the credit does not affect AGI, it affects the total of taxes paid already (those already withheld). Not only does it not affect taxes withheld, but those that have no taxable income after AGI is figured or any withholdings are entitled to receive a tax credit, which means that taxes collected from everybody else will be paid to folks that have paid none. Hence the claims of redistribution of wealth. A tax credit is a spending increase, it is not a tax cut. I hope my simple explanation makes it clearer as to what my meaning is. A person working for min wage, will still be taxed the same under Obama's proposal throughout the year, not at a reduced rate. No, you're wrong, clearly. I gave you an example in numbers (simplified as they were). Give me some back. The whole point of a credit is it does not affect adjusted gross income. I don't know how to make it clearer than in the example I gave. A direct comparison of tax reduction on gross income opposed to a tax credit in the same amount will always favor a credit as far as overall tax savings. As far as more money in the paycheck each week, I think most people would accept a higher deduction in their weekly pay in exchange for an overall greater savings on a yearly basis. I've read your comments repeatedly and I just fail to see where you justify your last statement. How in any conceivable way does a tax credit equate to a tax increase? Tax credits do not affect AGI or Gross income, nor do they affect the ammount of tax that is withheld. The only thing a tax credit affects is the bottom line of whether you have paid enough in taxes when filing. Therefore, a tax credit is just a refund at the end of the year, it does not put any more money in somebody's pocket during the rest of the year. What numbers do you want? The Senator has proposed a tax credit of $500 per person in the bottom 95% of income earners. There are no reductions in the the marginal tax rate. Period. Too, there is still speculation that the "Bush tax cuts" would be repealed and these tax credits instituted in their place, thus there could be a tax increase on all taxpayers. My final sentence did not say that a tax credit is a tax increase. Simply put a tax credit is a spending program, similar to welfare. It costs the government money as an expenditure. Is that clearer?
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