Joe the Plumber: The Obama $250,000 TAX bracket question
by Pravin, Wed Oct 15, 2008 at 11:24:10 PM EDT
I need some clarification on this issue. Obama said everyone making less than $250,000 will get tax breaks. I take this to assume that if you make $260,000, you will still get a tax break on the first 250,000 and will only pay higher taxes on any income greater than that.
So when Joe the Plumber approaches Obama and complains about having to pay higher taxes because the business he is buying makes more than $250,000, is he referring to revenue or net income? If it's just revenue, what does it matter to him? His net income will still be less than $250,000 after paying all salaries.
If Joe does end up earning more than $250,000 net income, that tells me two things:
- Joe will be a rich guy. So why whine like he is some middle class guy.
- Joe will only be paying a higher rate on that part of his net income greater than 250K. Update [2008-10-16 3:43:55 by Pravin]: I just saw some article where they interviewed him. He seems aware of this. Why would he forgo buying a business just because of a 3% marginal tax difference on anything more than 250,000(36% under McCain, 39% under Obama). He is still getting a tax cut on the first 250,000. I think Obama should have made this point clearer in the debate. And Joe obviously has no clue about the difference between revenue and profits.
Am I wrong on both assumptions? Even if I am wrong on one of these two, Joe still ends up with pretty good money.
I just didn't think Obama explained it very well in the debate if I am correct in at least one of these assumptions.
Tags: 000 Obama small business, Joe The Plumber $250 (all tags)









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