Obama and McCain on the Economy

by Valorie Delp | More from this Blogger

16 Jun 2008 03:35 AM

Polls show that the number one factor on Americans minds right now is the economy. Inflation is outpacing the national average for our pay raises. Unemployment is up, families are losing their homes, and more importantly, consumer confidence is down. The number one question we're asking right now according to many polls, is what will the new president do to fix the economy. Yes, the economy is on our minds ever more so than bringing our troops home. Given that, I thought it appropriate to look at both McCain's and Obama's discussion of economics and how we're going to ameliorate our current situation.

Tax Cuts for Middle Class Families

It seems the general consensus among politicians is that the way you stimulate the economy is by putting tax money back into the pockets of Americans. We saw this with Bush's tax stimulus payment which landed several billion dollars back into American's pockets.

Both candidates are for cutting taxes for middle class families. In McCain's plan, he would like to repeal the alternative minimum tax. The AMT hits mainly middle class families. He would also like to double the personal exemption for dependents. It's currently $3,500 and he would like to double it to $7,000. For our family, this would pretty much eliminate the need to pay income taxes.

Obama's signature tax plan also involves simplifying the IRS code which he estimates will save tax payers 200 million hours and 2 billion dollars in tax preparer fees. Under his plan, the IRS would use the information it already receives to offer pre-filled out forms for people to simply approve and sign.

We Love Those Tax Cuts

I don't know very many people whose ears don't perk up when they hear the idea of 'tax cut', but beware--I'm not convinced it's all that it's cracked up to be. First of all, in the back of my mind I hear the replay of former President Bush's speech: "Read my lips--no new taxes." Only to find that within the four years in office--there were in fact new taxes.

The reality is that our taxes pay for the running of the federal government. While we could argue that there's misspending and that congressman make way too much money (and I would agree) and that we're spending a substantial amount of money on the war (which we are), you cannot simply cut taxes without getting money from somewhere else. If it sounds to good to be true--it probably is.

Valorie Delp shares recipes and kitchen tips in the food blog, and also writes about politics and the occassional movie review. To read more articles by Valorie Delp, click here.

Are you subscribed to the Families.com Politics Blog? With the click of a button, you can receive an email notification anytime a new blog is posted in the Families.com Politics Blog! Just look to the right of this blog and find the subscription center (it looks just like this picture). Click on "Subscribe via Email". You'll be instantly subscribed and the email address that you registered at Families.com with will receive an instant notification whenever we post a new Politics Blog! Don't miss a thing - subscribe now!

But let's look some more tomorrow at McCain's and Obama's proposed economic plans and how they might help our economy.

Related Articles:

My Last Article About Hillary Clinton For Now

Are Democrats Just Whiny?

History Was Made But Not Set in Stone

Are We Nearing the End?

Is America Ready for a Black President?

Learn more about Valorie Delp

Hello everybody! My name is Valorie and I am one busy lady! When I'm not writing or editing for families, I am busy trying to get my brood of 5 in line.

View Full Profile | More from this Blogger

Chantalle Altland (3159) 16 Jun 2008 06:25 AM

I am not a big tax cut beleiver. It might increase refunds next Spring, but it won't help the current situation today. I would rather see a deduction in gas prices, food costs, or mortage realignments so that the average family can stop struggling so much today. I look forward to your future blogs and reading more about their different points of view.

Valorie Delp (49340) 16 Jun 2008 06:47 AM

I tend to agree. . .although I'm not sure that much at this point can be done about gas and food right now. Gas prices are a whole ball of wax unto themselves. However, I do believe that if a significant portion of the population boycotted the two largest producers of gasoline that would be one place to start. But again, that's a whole ball of wax.