Obama on the Middle Class Tax Cut
From the McCain campaign: Barack Obama says he supports middle class tax cuts but he voted to tax those making just $42,000 a year.
The McCain campaign points out: Barack Obama Voted Twice In Favor Of The Democrats’ FY 2009 Budget Resolution That Would Raise Taxes On Those Making Just $42,000 A Year. (S. Con. Res. 70, CQ Vote #85: Adopted 51-44: R 2-43; D 47-1; I 2-0, 3/14/08, Obama Voted Yea; S. Con. Res. 70, CQ Vote #142: Adopted 48- 45: R 2- 44; D 44- 1; I 2-0, 6/4/08, Obama Voted Yea)
“What Obama voted for was a budget resolution that would have allowed most of the provisions of the 2001 and 2003 tax cuts to expire. In particular, the resolution would allow the 25 percent tax bracket to return to its pre-2001 level of 28 percent. That bracket kicks in at $32,550 for an individual or $65,100 for a married couple. … But as those of you who have filled out a 1040 know, that’s not actually how income taxes work. We don’t pay taxes on our total earnings; we pay them based on our ‘taxable income.’ The Urban-Brookings Tax Policy Center’s Eric Toder told FactCheck.org that ‘people with taxable income of $32,000 would have a total income greater than that.’ In 2008, anyone filing taxes with single status would be entitled to a standard deduction of $5,450, as well as a personal exemption of $3,500. So to have a taxable income high enough to reach the 25 percent bracket, an individual would need to earn at least $41,500 in total income, while a married couple would need a combined income of at least $83,000.” (“The $32,000 Question,” FactCheck.org, http://www.factcheck.org, 7/8/08)