Meet JoePosted: October 16, 2008
The world can’t get enough of Joe, a guy John McCain met on the campaign trail who was thrust into celebrity status when McCain and Obama mentioned him by name over twenty times in [last night’s debate](http://www.youtube.com/watch?v=DvdfO0lq4rQ&eurl=http://video.google.com/videosearch?hl=en&client=firefox-a&rls=org.mozilla:en-US:official&hs=Hbw&resnumiurl=http://i1.ytimg.com/vi/DvdfO0lq4rQ/default.jpg). Joe was concerned that if he purchased his boss’ business which he said grosses between $250,000 and $280,000 annually that he would be forced into a higher tax bracket. A reasonable concern for anyone considering a purchase of that magnitude at a time like this.
So in an effort to keep things straight, let’s get to know Joe and understand more precisely this new poster child for the Republicans would be affected by Obama’s tax plan. You might be surprised.
1. Let’s assume for a moment that Joe purchased his boss’ company and in 2009 made over $280,000. Under Obama’s plan, all income under $200,000 would be taxed at a lower rate than individuals are currently paying, income between $200,000 and $250,000 would not be taxed differently and income over $250,000 would be taxed at a higher rate. Under the current progressive tax law that means that only $30,000 (the amount over $250,000) would be taxed at a higher rate, and **the bulk of Joe’s income ($200,000) would be taxed at a lower rate**. Here is how it would shake out in the books:
> Analysts calculated that the extra tax would amount to $900, which would likely be more than offset by separate provisions of Obama’s plan: a 50 percent tax credit for health care and elimination of the capital gains tax for small businesses. — source: [MSNBC](http://www.msnbc.msn.com/id/27221645/)
2. However, Joe’s *gross* income is different than Joe’s *taxable* income. Once you actually deducted from the $280,000 any business expenses, wages, and other deductibles, Joe’s *taxable* income would certainly fall below $250,000 meaning that **Joe’s taxes would actually *go down***.
But the above is based upon the assumption that Joe’s boss’ business makes that much, which it doesn’t. As it turns out, the business’ annual *revenue* is about $100,000, further cementing that Joe would **not be adversely affected by Obama’s tax plan *at all***. Other failed assumptions about Joe that John McCain has made:
* Joe could get a loan in the first place. He can’t right now as credit markets are frozen.
* Joe is a plumber. He is in fact not licensed and thanks to this recent publicity he may actually be sanctioned by the city as a result (oops).
Sorry for the politics, but I can’t help myself. If there is one thing I hope people hear is what Obama has been saying over and over and over again, and after every time John McCain insists that under Obama’s plan, people’s taxes would go up:
That includes mine. But you know what? If Obama asked me to pay more than I do today, I would. Why? For starters, while I could certainly use the extra income, there are others out there who could use it more. Plus, I want to live in world where neighbors and citizens extend to each other a helping hand when times are tough, and not turn our backs on them based on a procrustean “every man for himself” ideology. God forbid that one day, due to forces outside of my control I find myself in need — only to find that there is no one there to help, and no safety net to fall back on.