Sep 13, 2008

Obama: "Read my lips!"

I don't like this pledge not to raise taxes. You can't restore fiscal balance by taxing only the rich, and then not even them too much. Are Americans really that stupid and immature that they won't vote for anyone who doesn't promise to burden their children with huge debt cut their taxes?

Yes, Obama's plan is a lot better than McCains. Trillions better. The choice between the two is clear. But it is sad that we are not even offered the choice of a fiscally responsible plan. It's like a small car in the 1990s - there just isn't a market for that product in America. It took $4 gas for Americans to discover small cars; what amount of national debt will it take to discover fiscal discipline?

According to Tax Policy Center, Obama's plan would increase revenues by $600 billion over the next 10 years relative to "current policy", while McCain's plan would reduce revenues by a similar amount. Here, "current policy" means extending the Bush tax cuts; if we compare to current law, in which those tax cuts expire in 2011, we are talking about revenue losses of $2.9 trillion (Obama) or $4.2 trillion (McCain). And that's not even counting their health care proposals, which are harder to compare side-by-side (McCain's would lose another $1.3 trillion in revenues; Obama's would mostly affect the spending side).

My message to whoever gets elected: please, please break your tax promises!

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