Taxing Plans

John McCain’s tax plan is far from perfect, but at its core is reducing taxes on businesses, small and large, to encourage job creation and kick-start the economy. The idea behind the plan is that a good job with a strong and growing business is a far better way to drive Americans’ incomes up than to distribute short-term government handouts, as the Obama plan does. Tax relief on individuals is certainly nice, but is really small potatoes compared with tax relief on businesses - in terms of both dollars and societal impact. To wit:

If my taxes are reduced to 1%, I'm going to have a lot more cash, right? Every paycheck will be larger, and that money has to go somewhere (as a fundamental law of physics). I could leave it in the bank, giving them money to lend (and earning interest for us both); I could invest it in the market, helping to spur job creation (and earning money for us both, if I pick the right companies in which to invest); or I could purchase products and services (thereby enriching other people - businesses and their employees). The trouble is that with the taxation on businesses so high, my purchasing power is pretty low - each of my dollars doesn't go very far, because taxes on businesses are passed on to the consumer in the form of higher prices. Just look at the price of a loaf of bread or a gallon of milk.

In my view it's better for the country to have a mix of the two - lower taxes on AMERICANS (no matter whether they be middle-class, upper-middle-class, etc.; we're all SUPPOSED to be equal under the law, not 'progressively' taxed at different rates as we earn more, anyway) and on businesses.

Modern economies build their wealth through investment and job creation, and Obama’s tax plan is aimed squarely at reducing investment and punishing wealth creation. Obama’s tax increases to pay for his new spending programs amount to billions of dollars of higher taxes on investments, businesses and individuals. This sends both businesses and investment dollars overseas, benefiting NO ONE in America - but absolutely fomenting more class envy and class warfare rhetoric.

The main people who suffer under such a plan are at the bottom of the economic ladder, because though they receive more government handouts, they will have fewer and fewer prospects for employment - to say nothing of entrepreneurship.