Hope + Change = 70% Tax Rate
Obama’s tax plan has two major components. First, he promises to end
the Bush tax cuts, allowing the top two tax rates to return to 36
percent and 39.6 percent. Second, he promises to end the Social
Security payroll tax cap for incomes above $250,000. Individuals making
more than $250,000, therefore, would face a 15.65 percent tax rate from
payroll taxes in addition to a top income tax rate of 39.6 percent for
a combined tax rate topping 56 percent. Individuals living in cities or
states with high taxes such as New York City or California would have
tax rates approaching 70 percent, levels not seen since Carter was
Still, Barack assures us that John McCain’s and George Bush’s policy stances are indistinguishable, so let’s so stipulate. Is that worse than the alternative?
After all, what President in the modern era does Senator Obama’s agenda most resemble?
Huge expansion of the federal government? Check. Letting entitlement spending run wild? Check. “Windfall profit” taxes on oil companies? Strong desire to meet with dictators and state terrorism sponsors? Big doofy grin? Check, check, and check.
The Tax Man Cometh
Since the early 1980s — after Americans rejected Jimmy Carter and embraced Ronald Reagan and his tax cuts — the United States has benefited from relatively competitive tax rates. But if Sen. Barack Obama’s tax plan becomes law, the IRS will become one of the most punitive tax men in the world.
(Obama caricature by Cox & Forkum)