Good article on economy / elections

[Peter1469]

http://online.wsj.com/article/SB121910117767951201.html?mod=todays_columnists
Now there are good reasons Mr. Obama is not likely to pursue the revenue side of the fairness question. As this newspaper noted in a recent editorial, the latest data from the Internal Revenue Service does not show to Mr. Obama's advantage. As we come to the end of the Bush administration, the top 1% of American taxpayers already pay 40% of all income taxes -- the highest level in 40 years. The top 10% of income earners pay 71% of the taxes.

[SDML]

I knew a guy long ago. He had been mayor of a small town (which I didn't know at the time). We were discussing elections - the 1996 election to be specific, which found Bill Clinton seeking re-election against Bob Dole. There was much dis-satisfaction with Mr. Bill and there was the typical blabbering about who would win and why. So the Mayor says "Clinton will win.", just like that. I comment that he seems awfully confident.

He puts it on the line: If the economy is good, the incumbent will win, plain & simple. If it is bad, the incumbent will lose. Period.

I said that was over-simplifying things and he said "Not so. Sure there are hard-line party folk and even a handful who vote on principle. But not the general population. I don't care one whit what they say at the water cooler or the party to your face. Once the curtain closes, they vote with their wallet.".

He then cited the 1992 election, which Bush (the incumbent) lost. In that vein, let us remember that Carter (the incumbent) lost. Many can cite plenty of reasons other than the economy, but...

If the economy stays as-is, Obama will be your next president.

If the economy rebounds, McCain actually has a chance.

Odds are overwhelmingly in favor of Obama, no matter what people say at the water cooler.

Now I'll go read the article......

[Gunit Hussein Sangh]

There's also one other thing to consider. The total $$ amount can be a bit deceiving. What percentage of the have-more class income is being paid in taxes compared to middle-class income earners

Warren Buffet has made the comment several times that he, a multi-billionaire, pays about half the percentage of his income in taxes as his secretary.

But mentioning that fact is class warfare isn't it 

[SDML]

Gunit, do you support a progressive tax system, a flat tax system, or the abolishment of the personal income tax?

[Gunit Hussein Sangh]

First off, it doesn't really matter what I, or for that matter any ranter on this board, thinks.

The tax system certainly needs revision. It's too complicated and broken. If it was up to me would first off eliminate ALL tax loopholes and reduce the current tax rates.  I would keep the system somewhat progressive as the wealthy does use more government services (legal, international resources and government services enforcing regulations etc).

[Vermouth]

McCain said you aren't rich until you make over $5 million a year?

Okay, that means we basically have a flat tax. It's only those destitute people making under $357,700 a year who get to pay a lower rate than the rest of us.

[Peter1469]

I would suspect that Mr. Buffet’s tax liability is lower than he would expect because of his own actions in putting his income producing money into investments that have favorable tax brackets or breaks.  And Mr. Buffet, as is any citizen, certainly free to write a check to the US Treasury anytime he wishes.