I have been looking at the tax plans for both presidential candidates. I believe that both have good ideas and bad ideas. But it’s fair to say that we really don’t know if either of them will work.

It is true that Barack Obama’s plan is focused more on helping the “common man”, by providing tax relief to middle America - but at what expense?

Will a measly $1,000 a year really make the difference? How are we going to pay for it? The national deficit is growing at an alarming rate and additional tax cuts will just add to it.  This could have long term devastating effects on the economy and the value of the once “almighty dollar”.

On the other hand, John McCain’s tax plan calls for giving big business and the highest earners the larger tax cuts.  The “trickle down economics” of the republican plan doesn’t sit well with most Americans. But let’s be fair - it had worked in the past (some will obviously disagree).

So what is the right course to take on tax reform?  Everyone has ideas, but no one knows for sure.  I believe that giving the middle and lower classes a tax break can help the “psychology” of America.  It can help average folks feel like there is a future - that this economic crisis can be turned around.

The Obama plan calls for promoting and supporting domestic small businesses and that is great for America.  I believe that John McCain feels that same way, but he hasn’t really come across as the savior for the middle class.

I think both candidates agree that Alternative Minimum Tax must be eliminated. The tax reforms of 2001 expire in 2010 and AMT will tax more than 20 million Americans, if it is not changed.

John McCain’s plan calls for cutting the corporate tax rate to 25%, down 10% from the current 35%.  But will that only help big business?

Both candidates agree in health care reform. But again, it will cost trillions, yes trillions of dollars in the long run. Can we afford it - can we afford not to do it?

The bottom line is this: We won’t know what will work until a new president is elected,and the tax plan has time to mature.

I hate to say it - but most Americans want immediate gratification and middle class Americans deserve something to look forward to. The John McCain plan sounds great for big business and the wealthy - but what about the rest of us?

There are plenty of misunderstandings about the Obama Tax Plan. It’s time to lay out the facts and let the voters decide if the tax plan is in the best interest of America.

Before we do, it’s important to note that the Obama plan is all about giving middle and lower class Americans a tax break, which is approximately 95% of all Americans.

The John MCCain tax plan follows the tradition tax plans, giving the highest earners the biggest tax breaks, while providing little support to the middle and lower classes.  We all now this as trickle down economics.  The theory is that giving big business and the highest earners tax breaks, will trickle down to the average Joe, “no, not the average Joe Plumber”.  Bush subscribes to this policy - has it worked?

Here is what the Barack Obama tax plan is proposing:

Raise taxes for those making over $250,000 a year

Let’s be realistic - they can afford it.  Over the past eight years, the highest earners are the ones who have benefited from the Bush plan. They can afford health care, to buy a home, to maintain a home, to go on vacation and not have to worry about making ends meet every month. Even today, they are in much better shape, financially than most of America.

Increase the tax credit for low wage earners:

Barack is proposing to triple the amount of tax cuts for main street Americans. It sounds like a lot but in reality, it will barely be enough for us to get by.  But his plan is going in the right direction.

Here are some comments about the Obama Tax Plan:

Rea Hederman Jr., a senior policy analyst at the conservative Heritage Foundation “said the middle class would likely pay less under Mr. Obama’s plan than Mr. McCain’s.” [NY Sun, 8/15/08]

Obama’s tax calculator is “a very simple gadget that’s the most useful thing I’ve seen on any political website in a while.” [Forbes.com, 10/08]

Cut taxes for the small business owners and those companies that keep jobs in America

How many people do you know have lost their jobs because big business has shipped the jobs overseas?  I, for one, am directly affected by this - and I am still unemployed.  I am angry that the big companies are looking for a profit and forgetting about their employees, some who gave their sweat and blood for 10 - to 20 years, only to be told - get out!

Now, I’m starting my own small business - and I’m excited about the prospects under Barack Obama’s tax plan.  In order to compete globally, America must keep the jobs here and support our small businesses - we are capable of competing with anyone in world!

Here are a few more facts about Obama’s tax plan:

• Cut taxes for 95 percent of workers and their families with a tax cut of $500 for workers or $1,000 for working couples.

• Provide generous tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.

• Eliminate capital gains taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of healthcare and to reward investments in innovation.

• Dramatically simplify taxes by consolidating existing tax credits, eliminating the need for millions of senior citizens to file tax forms, and enabling as many as 40 million middle-class Americans to do their own taxes in less than five minutes without an accountant or tax advisor.

Tax Relief For Middle Class Families will include:

• A $1,000 Tax Credit
• A refundable $4,000 American Oppportunity Tax Credit
• A Universal 10% Mortgage Interest Tax Credit
• Elimate Income Taxes for Seniors Making Less than $50,000
• Expand retirement savings incentives
• Health Care Credits
• Expand the Earned Income Tax Credit
• Expanded Tax Credits for Clean Vehicle
• Simplify Tax System

Tomorrow is the day Americans hit the poll and vote for their presidential choice.  According to many pundits and political analysts, Obama appears to be a shoo-in.  With that said, what are the implications for the common, middle class folks? And what about our taxes?

According to Barack Obama’s tax plan, more than 95% of Americans will get a tax cut while those making over a quarter of a million dollars a year will get an increase.  Here’s his tax plan in a nutshell:

Let’s say you are married (hopefully happily), and you make $60,000 a year and you own a home. You have two beautiful children, one who is a freshman in high school and the other is attending college.

Under the Obama Tax Plan, in 2009, you would get a $1,000 Work Pay Tax Credit, a $500 universal mortgage credit and a $4,000 college credit. The total savings could add up to $3,700 a year or a little of 6% of your annual income.

Let’s say you are married and your annual income is $85,000.  Then your family would be entitled to a $1,000 tax cut.

But what if you’re a single mom with 2 young children making $38,000 a year?  You would get a $500 work pay tax credit, a $500 universal mortgage credit and a $1,100 addition to the established child care credit. That is $2,100 or 5.5% more than under the current tax system.

If you are a 71 year old widow or widower making $33,000 a year, you would be entitled to $1,900.

These calculations are based on IRS Statistics of Income. The calculations are conservative because their may be other tax credits that you qualify for, including a $500 in savings from expanded Savers Credit and $2500 in savings per family from the Obama healthcare plan

According to CBS News, for the second day in a row, Sarah Palin focused the entirety of her attacks against Barack Obama on the Democratic nominee’s tax plan, rather than his personal associations.

“Just yesterday, we learned that America’s GDP actually fell in the third quarter of this year, and that confirms what we already know, and that’s that our economy right now is shrinking,” Palin said. “This is the worst possible time to raise taxes, but Barack Obama still wants to.”

Palin repeated her mantra that Obama has “an ideological commitment” that compels him to raise taxes.

“Now, his whole tax plan, really, it is, it’s so phony that it’s already starting to unravel, and we’re gonna call it the way that we see it,” she said.

Palin said that Obama’s definition of what constitutes the middle class seems to be evolving.

“And just this morning, Gov. Bill Richardson, a top surrogate for the Obama campaign, he who is working so hard to get Obama elected, Richardson said Obama’s tax plan would define middle class as $120,000 a year and under,” Palin said. “So now, we’re down to less than half the original income level and, just give it a little more time, and Barack Obama will be back to raising taxes on folks earning $42,000 a year.”

Appearing on KOAM radio this morning, Richardson said, “What Obama wants to do is he is basically looking at $120,000 and under among those that are in the middle class, and there is a tax cut for those,” according to a YouTube clip of the interview.

Richardson’s comments appear to have been a slip of the tongue, since the Obama campaign has not announced that it has changed its policy that everyone making less than $200,000 a year would get a tax cut and no one making under $250,000 a year would be burdened with a tax increase.

There seems to be a lot of confusion about the Obama-Palin Tax Plan. The true definition of the Obama tax plan appears to be elusive; it seems that everyone has a different opinion of exactly who will pay more, and who will pay under the democrat’s plan. Is it “fair and balanced”? It depends who you ask!