Thursday, September 11, 2008

Joe Biden's math problem

Sen. Joe Biden is either lying about Sen. John McCain's health plan or he is really dumb.

At a campaign stop earlier this week in Missouri, Biden was attacking McCain:

"But taxing American workers' health care is not the answer, he said. Under McCain's plan, Biden said, a person earning $50,000 a year, with employer-provided health care worth $12,000 a year, would be subject to income taxes on all $62,000. Now, no taxes are levied on their health care benefits.McCain has been highlighting his proposed $5,000 a year tax credit to offset some of that tax hike, but Biden said that at least $7,000 would still be subject to the tax."

Biden's $7000 figure only makes sense at all if we are taxing income over $50,000 at 100%. Is there something in Obama's tax plan we don't know about?

2 comments:

Hempy said...

You asked, "Is there something in Obama's tax plan we don't know about?"

The question you should have asked yourself, "Is there something about the income tax code that we don't know about?"

What about, no income is taxed at 100%? The income tax is based on the rate of x times y. The rate is not 100% times total income.

David Adams said...

Yeah, thanks Hempy. That was kind of the point of the whole post.