Excerpted from IBD, “Obama’s Tax Hikes”, August 22, 2008
When Bill Clinton ran for president in 1992, the centerpiece of his much-touted economic plan was a middle-class tax cut. Once elected, he announced that the deficit was bigger than he thought, so no tax cuts.
Writing in the Wall Street Journal earlier this month, Obama economic advisers Jason Furman and Austan Goolsbee promised: “The Obama plan would cut taxes for 95% of workers and their families with a tax cut of $500 for workers or $1,000 for working couples” on top of “tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.”
But what’s touted as tax-cutting hides tax increases for the middle class. According to the American Enterprise Institute’s … “Senator Obama’s proposed ‘tax cuts for the middle class’ are actually marginal rate hikes in disguise.”
The increase happens because Obama phases out the child and dependent-care credit for one-child families in the $30,000-to-$58,000 income range … and because of changes planned for Bill Clinton’s Hope Scholarship Tax Credit.
An “Economists for Obama” Web site calls the AEI findings “deeply dishonest” because their examples (are) “cherry-picked.” AEI responds that Obama’s use of refundability and phase-outs means that “any example will show these kinds of disincentive effects.”
Full article:
http://www.ibdeditorials.com/IBDArticles.aspx?id=304297643560219#
* * * * *
Want more from the Homa Files?
Click link => The Homa Files Blog
* * * * *
The Homa Files 
Leave a comment