Would Wurzelbacher supposedly get a tax cut under Obama?
Subject: Once again ABC misses the point
I am simply amazed at the ability of pundits to miss the point. The structure of Obama’s “tax cut” (i.e. tax rate changes, tax credits and thier phase out) is such that many people will face higher marginal tax rates (as the credits are phased out and marginal rates are changed) even if their average tax rate goes down. It is the increased marginal tax rate that creates a disincentive to invest. Average tax rates do not matter in this regard. Joe, who is considering investing in starting a business gets it. Why can’t pundits? This was one of Ronald Reagan’s most important points and America’s conservatives has apparently forgot it.