Obama Tax Cut for Incomes < $150k

UPDATE - A commenter tells me that Obama's cut-off for tax increase/decrease is actually $250k, not $150k. If true, then that's quite reasonable and great to hear.

This recent article

http://www.time.com/time/politics/articl e/0,8599,1812964,00.html

States that Obama wants:

and a tax cut for Americans making less than $150,000 a year -- to be financed with tax increases on those making more than $150,000 a year.

I don't know about the rest of you guys, but this latte-sipping liberal living in CA thinks the $150k dividing line is WAY too low.    Median house price in my county is $670k, which is $3500/month mortgage payment assuming you put $100k down and financed $570k at 6% for 30 years.   So ... $42k/year mortgage plus $9k/year property taxes and $2k/year insurance.   That comes to $53k/year just to 'own' a median priced house, which in this area will be a 2-3 BR with 1 bath, a square footage of maybe 1200 sf, on a 50' x 100' lot.   If your goal is to pay 1/3 of your take-home pay on housing  (a typical recommendation) then you need to be taking home $159k per year which means a gross yearly income of $220k (assuming 28% tax bracket).    Now, to be more in line with reality, most Californians actually pay %40 of their take-home pay on housing.   That comes to a gross income of $165k/year needed (assuming 20% tax bracket).  So in CA you're paying 40% of your income for a tiny house, the highest food and fuel prices in the nation ($4.65/gallon for gas, $4.20/gallon for propane), and Obama is going to raise your income tax?   Not an appealing prospect.  

McCain, on the other hand, is going to abolish the alternative minimum tax.  I'm barely keeping up with the mortgage on my teensy house, but the AMT gets me every year.    

Tags: Economy, obama, tax cuts (all tags)

Comments

40 Comments

Hooray

for John McCain?

by Student Guy 2008-06-11 11:31AM | 0 recs
BTW

where I grew up only the really big farmers and people like doctors made over $150k...

by Student Guy 2008-06-11 11:34AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

McCain is teh AWESOME!

Thanks for that information!

by Didion 2008-06-11 11:32AM | 0 recs
Hope the McCain points are worth it, troll.

by Firewall 2008-06-11 11:34AM | 0 recs
I know it's politics


But enough with the damn tax cuts.

Stuff like social security do and will cost monwy not to mention health care.

roads? Power grid?

Enough with the tax cuts.

by TaiChiMaster 2008-06-11 11:35AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k
The tax cut is for people making less than $75K
and it will be financed by an increase on people making more than $250K
by igwealth5tm 2008-06-11 11:35AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

I'm sure the 150K number is negotaible, and needs to be evaluted from a region perspective, as you are providing here.  What would you suggest?

Abolishing the AMT would be a terrible idea, but that number needs to be recaluculated, though, and I believe that congress is working on it.

All in all, I don't see too big of an issue here.

by NewOaklandDem 2008-06-11 11:35AM | 0 recs
Thank you for your concern!

by spunkmeyer 2008-06-11 11:37AM | 0 recs
Re: Thank you for your concern!

Honestly I think we need to use actual arguments to counter people's words, not just cute pictures and insults.

by Aris Katsaris 2008-06-11 04:30PM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

Leave California?

by kasjogren 2008-06-11 11:40AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

Miker2008...

Checked out your other diaries, you sure seem like a bitter Hillary supporter.

Too bad, hope you can find another outlet for your anger, rather then lieing about the Democratic Nominee for President on a Democratic Blog.

I think this would sell better here:

http://www.redstate.com

by WashStateBlue 2008-06-11 11:42AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;amp;lt; $150k

So he's presenting false information while shilling for McCain?  Shocking!

by NewOaklandDem 2008-06-11 11:44AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;amp;lt; $150k

Where's the lie?   You're saying the article I referenced lied about Obama's plan?  

by miker2008 2008-06-12 09:21AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

The top 5% of incomes is currently $176,000 I think, so setting the tax neutral point around there seems like a fair way to go. As for the AMT, by all means, index it to the income distribution in the US. If you want to catch the top 2% then set index it to the changes in that number.

by patooker 2008-06-11 11:43AM | 0 recs
175k is the starting point for the middle class

i.e. above that, you are middle class.

shows how much the public's getting screwed, don't it?

by RisingTide 2008-06-11 12:23PM | 0 recs
Re: 175k is the starting point for the . . .
By starting point, do you mean 175 is the highest of the middle or the lowest of the middle class? Because I might accept it has the highest . . . but I'd say the number should be at the 80th percentile. So 0-20 is the poor, 20-80 is the middle and 80-100 is of course rich. As for the middle getting screwed, yeah, I'd like a few years with someone I think is on my side more than the rich.
by patooker 2008-06-11 01:19PM | 0 recs
your numbers are wrong.

I mean that 175k is the lowest point of the middle class.

I am utterly certain that your definition is wholey inaccurate.

At the time middle class was coined (a while ago), most people were working class. Therefore, it was not designed to measure raw percentiles, but rather something else. It probably measured more of a status thing.

I'm taking one of the older definitions of middle class from a friend (and I'm almost 100% sure that it is being defined by the aggregate wealth of the different demographics).

by RisingTide 2008-06-12 06:57AM | 0 recs
Re: your numbers are wrong.

There are more sophisticated measures than raw income.   Like disposable income after basic necessities are met (scaled for how basic necessity is defined ... a 10-BR mansion is not a basic necessity even if it is your primary residence).  Any economic plan should be equally sophisticated.

by miker2008 2008-06-12 09:23AM | 0 recs
Leave California

For 670,000$ you could get this beauty.

6,000 sq ft.  IN the city of Minneapolis (no crappy suburban living) and you get clean air and water to boot unlike all of California.

When you go to get your drivers license renewed, it takes 15 minutes, not a day off of work.

Oh and we have more park space and theaters per capita than California...by like double.

by kasjogren 2008-06-11 11:46AM | 0 recs
Re: Leave California

Aww, man, I don't want to leave CA.  At least not permenantly.  But housing prices are ridicoulus here.  I'll find a way to make it work.

by NewOaklandDem 2008-06-11 11:47AM | 0 recs
Re: Leave California

Not bad!  I think I'd like Minnesota.   And I assume the offer includes that famous dip in Lake Minnetaka from Purple Rain?  :)   How's the job outlook up there?

by miker2008 2008-06-12 09:24AM | 0 recs
Re: Leave California

If you are in IT it is crazy good right now.

by kasjogren 2008-06-13 06:21AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

First the number is $250K not $150K. Only if you are making $250 and above will your taxes go up. if you are making 75- to 249,999 your taxes will remain the same.

ATM is to be adjusted to truly hit only the higher income brackets instead of the middle class.

http://money.cnn.com/2008/06/11/news/eco nomy/candidates_taxproposals_tpc/?postve rsion=2008061113

by jsfox 2008-06-11 11:52AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;amp;lt; $150k

Wow, I let myself get suckered by this guy and tried to engage him normally.  Now it's clear that he's not only a concern troll, but a lying concenr troll.  I think that gets you double McCain points.

by NewOaklandDem 2008-06-11 11:59AM | 0 recs
Re: haha

HA HA!

by RockvilleLiberal2 2008-06-11 12:56PM | 0 recs
Re: Obama Tax Cut for Incomes &amp;amp;lt; $150k

Ok, so the article had a typo.  Glad to hear that!
I revoke my complaint and will update the diary.  

Thanks.

by miker2008 2008-06-12 09:25AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

I live in one of the most expensive areas of the country - downtown San Francisco. I make nowhere near $150,000 and I pay some of the highest rent and sales tax in the nation. Yet, I don't personally need a tax cut. I could even handle a modest tax increase if the cause was especially appealing - like government-run health insurance or mass transit.

I guess my willingness to pay taxes for the benefit of my country, my city and my society just shows that I'm another worthless liberal.

So feel free to keep whining about how much it sucks to be a part of the upper-middle class.

by LandStander 2008-06-11 12:04PM | 0 recs
technically he's part of the lower middle class

it starts at 175k now.

Goddamn bush and his inflation!

by RisingTide 2008-06-11 12:24PM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k
Here from a MSM site, a non-partisan estimate of the tax impact of Obama vs McCain. By their estimate you have to cross ~$227,000 before you even start to see an increase in taxes.
by patooker 2008-06-11 12:14PM | 0 recs
89% of Americans report income less than $100K

According to the IRS, 89% of Americans report less than $100,000 in adjusted gross income (2005).  

by slinkerwink 2008-06-11 12:14PM | 0 recs
Re: 89% of Americans report income less than $100K

Yes, but the % of income spent on housing is, like, 20% in Tennessee.  Since housing is most people's biggest cost, it's pointless to focus on income alone.  Mortgage interest deduction goes some way toward rebalancing for that, but not enough.

by miker2008 2008-06-12 09:28AM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

Here ya go CA
http://www.irvinehousingblog.com/

$150 grand too low...?
Your out of touch comment reminds me of this
http://www.youtube.com/watch?v=7sqkJ8f4p tk

by nogo postal 2008-06-11 12:18PM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

I live in California in a 1056 sq foot condo, drive a prius, sipping my latte and I do it all for under $100k.  Wherever you are living...mooove.

by Sychotic1 2008-06-11 12:20PM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

I live in Los Angeles, and think the dividing line is just fine.

Thanks for playing.

by bosdcla14 2008-06-11 12:30PM | 0 recs
ok everyone is throwing out diff numbers

is it 150k per person or 150K per family?

by sepulvedaj3 2008-06-11 12:35PM | 0 recs
Re: Obama Tax Cut for Incomes &amp;lt; $150k

I tend to agree with the diarist, assuming his numbers are correct.  I don't make $150,000/year, but like to think I will someday with a bit of hard work and smart planning.  $150,000/year certainly doesn't make you rich, at least not here in northern New Jersey.  It may make you upper middle class in some parts of the country, but are we as a party now willing to raise taxes not only on the wealthy but also on the higher end of the middle class?

That strikes me as neither good politics (because the upper middle-class tends to vote in greater numbers than the lower and middle middle-classes), nor good policy.  

I don't understand the disdain many liberals have for people who earn more money.  I'm not talking about mega-rich plutocrats who trust-fund their way through life.  I'm talking about the majority of upper middle-class people who worked their asses off in school, incurred obscene amounts of student loan debt, and slave for 60-80 a week behind a desk.  Hard work is rewarded in a capitalist economy, and that is the way it should be.

by XoFalconXo 2008-06-11 12:37PM | 0 recs
Re: Obama Tax Cut for Incomes &amp;amp;lt; $150k

by RockvilleLiberal2 2008-06-11 12:58PM | 0 recs
Re: Obama Tax Cut for Incomes

Sorry, not all Democrats are in favor of high taxes.  Take your ideological purity and shove it.

by XoFalconXo 2008-06-11 01:10PM | 0 recs
Re: Obama Tax Cut for Incomes

Take your ideological purity and shove it.

That's cute coming from a republican.  Using the word Liberal in a derogatory context is a GOP trait as is spouting off about Democrats wanting higher taxes.  Head over to Redstate where you guys can sit around tell each other how great you guys are and how everything is rosy.  My ideological purity, as you call it, stems from having watch the country that I love be completely fucked up by a group of out of touch, bigoted, homophobic, war loving, asshats that have no clue what the fuck they are doing.  They went to war and put the bill on the credit card figuring "Fuck it, who will notice if we loot a couple billion here and there".  Sorry jackass, you don't get to be self-righteous.  You, and your klan, lost that privilege when people started dying so your oil futures would go up.

No go the fuck back under your bridge.
 

by RockvilleLiberal2 2008-06-11 01:22PM | 0 recs
Re: Obama Tax Cut for Incomes

Heh.  You're unhinged.  

I'm a long-time supporter of Barack Obama and will vote for him in November, despite his tax policies.  If you don't believe me, you can take a look at my posts over the last several months.  Besides, given that you are obviously prone to foul-mouthed tirades, I'd say you are the Republican.

For the record, I didn't say "Democrats want higher taxes."  In fact, I think what I said is that not all Democrats want higher taxes.  Some, like yourself, do;  some, like me, don't.  In any case, do I need to point out how silly you look for calling me a troll for allegedly claiming that "Democrats want to raise taxes" while simultaneously advocating for higher taxes?  You're a parody of yourself!

by XoFalconXo 2008-06-11 01:43PM | 0 recs

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