Obama's Tax Plan

Though Obama has some promising plans for change, his economic policy seems a little less encouraging. I was intrigued when I saw on the front page of Yahoo that Obama planned to cut taxes by some large amount. I delved a little deeper and learned some rather shocking things that gave me a new perspective on the matter.
His tax "cuts" are not really tax cuts at all; in fact, he actually plans to raise marginal tax rates significantly. The top tax bracket income tax rate would increase 13% to almost 40%. He also plans to raise the capital gains to 20% (increasing by 1/3). Social Security would double for those earning $250,000 a year, reducing their retirement into the negatives. His manipulated tax "cut" value is a result of his many "refundable" tax credits. Since 40% of people do not pay any income taxes, this is essentially a lump sum. Those who pay a small amount of income taxes will receive a check from the government depending on how much they paid. This is not actually a reduction in the amount of His additional credits to compensate low income families for education, health, and housing expenses are very generous and a positive change. However, these are not really tax credits but a significant amount of government spending disguised a a part of the tax system.
With our economy in a recession, actual tax cuts are neither appropriate nor realistic. This manipulation of the truth is simply political propaganda designed to attract votes to the uneducated population. Politicians should stop it with the smokescreens and mirrors and stop pretending that gaining $1000 is a tax or that Social Security returns should be negative. They should call a spade a spade and actually let people know what they are getting themselves into when they vote. Don't get me wrong -- I do not have any problems with welfare and the redistribution of wealth, but Obama should be direct about his policies. Manipulation and false impressions may be the best way to win an election, but they are not the best way to earn a country's long term trust.

http://online.wsj.com/article/SB121910303529751345.html?mod=googlenews_wsj

I helped Jeanne, Katie T, and wrote on my blog.

Hi!

This is my first post!
I might put up my economics journal every week...possibly...
If you have any questions about AP Econ I would be happy to help!
Good luck on Big Quiz 1!!!
Danielle