Obama and McCain's Tax Plans

While Obama has been running a great campaign, I am troubled by his tax policies. Obama is for tax for the middle class, and his raising taxes on the rich (due to his big government proposals). That seems all right. However, what troubles me is his plan on capital gains & the corporate tax rate. His plan would be to raise the capital gains rate from 15% to the mid 20's. McCain, on the other hand, wants to keep at the 15%. Obama's explanation is even more startling.

MR. GIBSON: And in each instance, when the rate dropped, revenues from the tax increased. The government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?
SENATOR OBAMA: Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness.

The debate goes on with this

MR. GIBSON: But history shows that when you drop the capital gains tax, the revenues go up.
SENATOR OBAMA: Well, that might happen or it might not. It depends on what’s happening on Wall Street and how business is going.

If Obama wants to make things more fair, wouldn't it be wise to lower cap. rates. More revenue would go to the government, and as a result, it could fund his big government programs (programs that never work...look at what happened to LBJ in the 60's and the current Bush). Plus, a lower cap. rate, the more investment, and more ROR (rate of return on the investment). Thus, wages go up, and more people are hired.

What else is disturbing is how he says that there will be great economic growth (if he's elected) if the federal corporate tax rates stay the same at 35% (not to mention the state corporate tax rates...here in Illinois it's 7.3%). So if you own a business in Illinois, and making an allright income (at least $75,000), you're taxed at a staggering 43%!! McCain's plan looks great with a reduction of the tax rate from 35% to 25%. This will add economic growth, and allow the U.S. to get out of this economic mess we currently are facing. The more you tax, the less people are hired, and the less wages go up. So the people Obama will try to help out, will ultimately be shafted.

It's interesting how many libertarians are switching to the left this year, especially when we have these bogus economic proposals by Obama.