I recently received this letter and thought it did a great job deciphering campaign rhethoric, getting to the underlying truth behind the Republican and Democratic candidates policy proposals. Please feel free to comment as this is a running discourse with a concerned voter:
To all Registered Voters,
I come to you with honest, humble, and most sincere urgency that you consider very heavily your choice for the next president of the United States of America. I am an aerospace engineering graduate from Illinois who has a voting record that includes both Barack Obama and George W Bush. I was born and raised in America, I’ve lived abroad, and I have observed this election with an open mind from the beginning. Now, I feel it is my duty to weigh in on this most crucial juncture in American History.
I think the past 8 years have created a demand for the highest caliber of candidate, and what we are seeing now are two talented, respectable men honestly working to better the future of our country. Senators Obama and McCain agree in principle on some fundamental social and ideological issues (climate change, affordable health care, competition in education, etc) And while I hold them both in the highest regards for their positions on those issues, their difference on the economy is enormous, and I ask you to please consider the impact of their respective tax plans.
Let me present all the facts. I think the clearest summary of your PERSONAL income tax under both candidates is outlined by a graph in the Washington Post (which has endorsed Senator Obama):
In summary, John McCain will cut all personal income tax rates. Fact. Barack Obama will cut personal income tax rates for 95% of citizens’ (i.e. all individuals making less than $250,000 per year.) and will drastically increase tax rates for those in higher income brackets. Fact. And yes, most of you reading this, (me included) will receive a slightly larger personal income tax cut under Obama. (This is before you consider the $5000 health care tax credit McCain would give you and the larger capital gains taxes Obama would institute.) In either case, if you are reading this you are probably going to get an income tax cut under Obama or McCain.
However, these are only their plans for personal income tax. Taxes have far greater economic impact than just what you and I bring home each month. Please consider CORPORATE tax rates. Senator McCain has for a long time argued that the highest US corporate tax rate be lowered from 35 to 25 percent. Barack Obama proposes to let that rate rise back to the 39.5 percent rate from before the Bush tax-cuts.
Many argue that McCain is pandering to greedy, wealthy American corporations, but let me clarify this point. Obama supporters argue that he is for ‘American job creation.’ However, I argue Obama’s plan will destroy American jobs. Our current corporate taxes are the second highest in the world. Obama’s tax hike for business would make companies in many US states more taxed than anywhere in the world.
Having lived in Europe for almost two years and traveled extensively in Europe and Asia-Pacific, I still argue that America is the most attractive place to live and do business. Low cost of living versus high quality of life is better than almost anywhere else I’ve been. However, there are a LOT of great places to live in this world. London, Singapore, and Hong Kong all offer high living standards, and America is not alone in this Global marketplace. In order to keep high-paying jobs in America, it has to make sense for companies to do business here.
Let’s consider an example of this non-isolated, global economy. Consider New York under Rudy Giuliani. New York became one of the most desirable places to live as a result of two key steps. 1) Thousands of police were added to combat crime. 2) This was paid for by lowering taxes in New York City.
How does this make sense? By lowering the cost of doing business in NYC, companies flocked to an environment where they could operate more efficiently and grow their business. As a result, New York experienced a tax revenue increase despite a tax rate decrease.
On the other hand, Obama’s tax hikes would distort the distribution of labor and drive corporations to other places. ALL CORPORATIONS are accountable to their share holders to be profitable. That is not greed, that is business. Competition demands that they make sound business decisions, and under the Obama plan, that decision for many will be to get out of Dodge.
So Obama says he for redistribution of wealth. Unfortunately, he is going to inadvertently redistribute American wealth to other countries that have learned from America’s pro-business policies of the past century.
This is a critical point to understand. Driving coprorate headquarters overseas will not increase the average salary in America or keep the American economy strong. However, a lower corporate tax environment in America would lead to more job openings here. With jobs that need to be filled, companies are willing to pay workers more because they can still save money in the long run and be profitable for their shareholders by doing business in America.
In this most critical of economic times, it is imperative that America remain a competitive place for GLOBAL business. Both candidates will put more money in the hands of consumers, but Obama will penalize economic success and stifle job growth. For all his ‘worldly’ experience, I had hoped this simple concept is something the freshman senator from Illinois for whom I once voted understands. However, rest assured that I will not vote for him again.
Regardless of your political affiliation, please pass this message along to any and all voters you know.
Sincerely,
Adam Gorski
P.S. For a full review of the facts I mention above, please read a review like the that from the Brookings Institute: http://www.taxpolicycenter.org/UploadedPDF/411693_CandidateTaxPlans.pdf or visit the candidates’ websites:
http://www.barackobama.com
http://www.johnmccain.com
However you decide, please make an informed decision. I’m happy to discuss this with anyone.
