Obama’s Tax Plan

Well well. This analysis shows that Senator Obama’s “tax cut for the middle class” is actually a tax increase for at least some of the middle class. This happens because of the complexity created by tax credits and tax credit phase-outs. I’m sure the good Senator doesn’t intend to increase middle class taxes (or, at the every least, doesn’t intend for people to know). These kind of problems result from the bewildering complexity of the tax code and Congressional attempts to micro-manage the economy. Regardless of what policitians propose, further complication of the tax code will make it harder to predict consequences. Obama may want to reduce taxes on the middle class, but without simplifying the tax code, the actual results are unpredictable. It’s a shame that tax simplification isn’t a big campaign issue.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: