Joe The Plumber
So as lots of pundits are saying, Joe the Plumber was the star last night. I've been pretty busy today so my guess is that by the time I'm done writing this 1000 other people will say the same thing.
This guy would get a tax cut under obama's plan.
A buddy of mine sent the Joe Video over to me.
Here's what I struggle with:
He says he wants to buy a business for $250K. Cool. Unless plumbing has 100% margin he's making less than that.
Obama's plan gives a tax cut to income under $250,000 each year, and increases the marginal rate for taxation for taxes above $250,000.
There are some variations in how businesses are set up, but typically any entity (LLC, S-Corp, C-Corp) flows money to the personal income tax through salary/owner withdrawals (i.e. take home money). Profit is also flowed back to the personal income tax. These entitities are the types of small businesses that create jobs.
So back to Joe:
If his new plumbing business would make $250K each year total, his take home might be good, and he'll have the pride of ownership, and blah blah blah. He would NOT be making over $250K each year.
Now, if on the other hand he's talking about profit than yes, if he owns a $2 or $3 million dollar plumbing business and walks away with $250,000 profit he'll be taxed more. That said, come on--you're making $250K in flowed through profit (presumably after paying yourself some salary) you're kind of rich.
Maybe there's room for a purely philosophical debate over taxes (I say purely philosophical because the preponderance of evidence points to a vibrant middle class as the driver of our economy) but some notion that Obama's tax plan would stop this guy from buying a business is nonsense.
This guy would get a tax cut under obama's plan.
A buddy of mine sent the Joe Video over to me.
Here's what I struggle with:
He says he wants to buy a business for $250K. Cool. Unless plumbing has 100% margin he's making less than that.
Obama's plan gives a tax cut to income under $250,000 each year, and increases the marginal rate for taxation for taxes above $250,000.
There are some variations in how businesses are set up, but typically any entity (LLC, S-Corp, C-Corp) flows money to the personal income tax through salary/owner withdrawals (i.e. take home money). Profit is also flowed back to the personal income tax. These entitities are the types of small businesses that create jobs.
So back to Joe:
If his new plumbing business would make $250K each year total, his take home might be good, and he'll have the pride of ownership, and blah blah blah. He would NOT be making over $250K each year.
Now, if on the other hand he's talking about profit than yes, if he owns a $2 or $3 million dollar plumbing business and walks away with $250,000 profit he'll be taxed more. That said, come on--you're making $250K in flowed through profit (presumably after paying yourself some salary) you're kind of rich.
Maybe there's room for a purely philosophical debate over taxes (I say purely philosophical because the preponderance of evidence points to a vibrant middle class as the driver of our economy) but some notion that Obama's tax plan would stop this guy from buying a business is nonsense.
8 Comments:
William The Bomb Thrower?
Wright the Racist?
Clearly not an issue in this election, right?
What are you talking about? How does it relate in any way to my post? Are you not the "issues" guy who is constantly exhorting people to answer lists of questions about policy?
To the guys you mention:
Ayers:
I wrote lots and lots about Bill Ayers a few weeks ago. Obama has said several times that he condemns Ayers despicable acts. Now Ayers is just your typical member of the idiot left, annoying sure, but if he wants to have a coffee at his place where he asks his buddies to give Obama money I'm cool with that I guess.
Reverend Wright:
I think Reverend Wright is goofy, getting goofier, and is kind of a racist. I think that he comes from a very different theological perspective than I do which is ok, but that this theology is really jacked up, which is not. I also think that he worships the same God I do, speaks prophetically at times when white suburban pastors are failing to speak truth to power, and has done some world moving things for social justice.
He believes some stupid crap, but here's the thing: one of my close friends and spiritual mentors believed for a long time that women should not be allowed to lead men, that all government regulation should be struck down, and that violent upheaval may be necessary to heal the racial divide in Cincinnati. His ideas were somewhere between wrong and crazy wrong but I still love him, have learned from him, and am a better husband, father, etc. because of him. I see the same thing in the Wright-Obama relationship.
Yikes, Ryan.
Why the hostility?
Take care.
Mike:
What was the intention of your questions about Ayers and Wright?
I find it laughable that many (the media included) is so focused on some guy who may or may not have a plumbing license, and may or may not owe a hospital some money, ....all because he asked the media darling, Obama, a question that was difficult to answer.
This while, Rev. Wright led a church that Obama sat in for close to 20 years, ...all the while some reports link him to Ayers, ... and all the while his link to Tony Rezko is dismissed by the media as not important.
Long story short, Joe the Plumber is not more important than William Ayers, Tony Rezko, and/or Rev. Wright., but the bloggers et al. would have you believe otherwise.
That was my point, ...which was not intended to be a personal affront to you. My apologies if it came off that way.
Mike:
If I sounded annoyed I guess it's because I was.
Bloggers didn't elevate Joe the Plumber, McCain-Palin did. McCain just kicked off the "Joe the Plumber" tour. I'm not kidding, I heard McCain say it.
I've not watched news for a few days, but the other night I saw a 10 minute story on Bill Ayers and we all spent lots of time talking about Rev. Wright.
I think these questions have been asked and answered. If you don't, that's fine, but "Why won't the media cover..." is goofy.
If you think that bloggers, et al. have not elevated Joe the Plumber, I will have to disagree. Your initial post illustrates this.
My point has always been that the media elevates non-issues, which is evident in the non-informed voter.
Hope and Change!
Peace and Prosperity!
McCain and Obama referenced the guy at nauseum.
John McCain kicked off the Joe the Plumber tour.
You're entitled to your own opinion, but not your own facts.
Post a Comment
<< Home