McCain's Tax Smoke

by John M. Curtis
(310) 204-8700

Copyright October 18, 2008
All Rights Reserved.                    

      Attacking Democratic presidential nominee Sen. Barack Obama’s (D-Il.) plan to lower taxes for the middle class, GOP presidential nominee Sen. John McCain blasted the 47-year-old first-term senator from Illinois for trying to “spread around the wealth.”  True to Supply Side Economics and trickle down theory, McCain’s plan would give an additional $300 billion in tax breaks to the top one percent of wage earners, those earning $298,000 or more.  At the Hofstra University Oct. 15 debate, McCain reassured CBS News anchor Bob Shieffer he’ll close the $500 billion budget deficit and balance the budget by 2011, through taking out a meat cleaver to the non-defense side of thel budget.  He promised, as president, to cut any and all non-defense-related programs, jeopardizing the safety net, including Social Security and Medicare, needed more in these hard times than ever.

            McCain’s plan would give the well-heeled, including himself, more tax breaks while the vast middle class foots the burden.  “Hold onto your wallet,” McCain told campaign rally in Miami,” as if he were speaking to millionaires.  Ninety-five percent of McCain’s Miami crowd earn under the $250,000, standing to cash-in on Obama’s plan.  McCain pretends his audience enjoys the same inherited wealth as his family and friends.  While there’s nothing wrong with being rich, there’s something sick about politicians blowing more smoke.  McCain knows that giving more breaks to people in his tax-bracket, would double the size of the federal budget deficit, now standing at an unprecedented $500 billion.  Obama’s plan gives relief to the middle class while collecting that loss from those capable of paying more.  Giving the wealthy more tax relief makes no sense.

            McCain’s basic premise on taxes involves the discredited “trickle-down theory” that if you give the wealthy more tax breaks, it filters down to lowly wage-earners.  Former President Ronald Reagan promised a balanced budge in 1980 while running against former President Jimmy Carter.  Reagan inherited a $63 billion deficit in 1981 and handed off a $263 billion deficit to his running mate President George H.W. Bush in 1988.  McCain’s budget forecast doesn’t accommodate all of his defense plans, including a permanent fleet in the Persian Gulf, the restoration of the fleet to 300 ships, the expansion of the national reserve, the “Star Wars” missile defense plan, missile intercepters for Eastern Europe, continued funding for the Iraq War, possible contingency plans for Iraq and escalation of forces in Afghanistan.  Without middle class tax relief, the economy looks sluggish.

            McCain talks about how Barack’s tax plan robs “Joe the plumber” from his dream of buying the plumbing business.  Ohio resident Joe Wurselhacher is actually an unlicensed plumber who owes back taxes, claiming he’d like to own a $250,000 plumbing business.  Nothing in Obama’s tax plan prevents any entrepreneur from owning a business.  It gives 95% of all employees earning less the $250,000 immediate tax relief, generating the kind of cash-flow needed to stimulate the economy.  Barack’s plan creates a massive stimulus to the anemic U.S. economy, giving the lion’s share of taxpayers more money.  When McCain says “look out for your wallet,” he referring to his plan to reduce taxes for top-wage-earners at the expense of the rest of the country.  Eight years of Supply Side Economics has left the country in the worst shape since the Great Depression.

            McCain talks as if he’s speaking to a vast majority of millionaires at his rallies and stump speeches.  Warning about Barack’s tax plan creates the myth that McCain’s plan somehow benefits working people.  “When politicians talk about your money and spreading it around, you’d better hold onto your wallet,” McCain told a Miami rally.  Nothing could get more Orwellian than telling voters a tax cut would raise their taxes.  “Sen. Obama claims he wants to give a tax-break to the middle class, but not only did he vote for higher taxes for the middle class in the Senate, his plan gives away your tax dollars to those who don’t pay taxes.  That’s not a tax cut, that’s welfare,” said McCain, exactly the opposite of Barack’s plan.  McCain doesn’t mind tax breaks, corporate welfare and preferential treatment for the nation’s most wealthy companies—just not needy individuals.        

            Completing his prodigious smoke-blowing act, McCain’s “Straight Talk Express” has morphed into this year’s prize-winning spin machine.  McCain is concerned about his own wallet and those of other affluent taxpayers, expected to pay more under Barack’s tax plan.   Let there be no mistake, Obama’s plan puts more cash into the pockets of middle class taxpayers, providing a real stimulus for the economy.  Pretending that that raises taxes goes to heart of McCain’s propaganda that ordinary folks get hurt with Barack’s plan.  Calling Obama’s health care plan “a single-payer government plan” totally ignores how it differs from Hillary-care.  McCain knows that Barack’s tax plan provides middle class tax relief while his heath plan offers quality insurance to ordinary citizens.  McCain frequently asks, Who is Barack Obama?:  He’s the guy who’ll lower your taxes.

  John M. Curtis writes politically neutral commentary analyzing spin in national and global news.  He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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