Joe The Plumber Is Really Pissed

“You (Obama) were going to put [Joe] in a higher tax bracket which was going to increase his taxes, which was going to cause him not to be able to employ people, which Joe was trying to realize the American dream,” McCain said.

This is ridiculous. First, the prospective employee’s wages would be tax deductable as a business expense so this would lower Joe’s taxes. Joe would only be worried when his new employee helped his business to higher profits which would then be taxed slightly more. Second, the tax increase only kicks in after the $250,000 of income, taking the marginal rate up 4 percentage points from 35% to 39%.

The Republicans have this idea that any increase in the top marginal tax rate will blow up the economy. This is based on the reverse principle that every decrease in the top marginal rate does to the economy what spinach does to Popeye. Unfortunately, experience does not support this mentality. Clinton’s 1993 tax increase did not kill the economy, instead we had sustained and strong growth. Bush’s 2001 tax cut did little to help the economy.

I think there is validity to the idea that top marginal tax rates can be made too high. In 1964, President Johnson enacted the tax cut introduced by President Kennedy and this brought down the top marginal rate from 91% to 70%. The Reagan 1981 tax lowered it aain from 70% to 50%. Both of these tax cuts preceeded periods of strong economic growth. The top rate was lowered all the way to 28% prior to 1991-1992 recession. But somehow the recession still happened. Bush 41 raised it to 31% and then Clinton brought on economic apocolypse by raising it back to 39.6% which is lower than it was for most of the Reagan administration.

The basic principle is that if the government overtaxes your next dollar of income, you might not try as hard to make that dollar. When that happens on a national level, you won’t have as vigourous economy as you should have. I believe that argument holds up at the 91%, 70%, or even 50% top rate levels. But there are no facts in evidence that support that argument when the top rate is in the late thirties. Going from 39.6% to 35% did nothing for growth and a lot to harm our fiscal position. Obama just wants to go back to Clinton’s top rate which was lower than Reagan’s top rate.

Joe, if you are reading this, you will be able to grow your business under an Obama administration. Listen dude, if your making a quarter mil in profits, I don’t think it is the end of the world for you to chip in a little more to the national coffer.

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Treating McCain like the doddering old fool he really is works well for Obama. It seems to infuriate the old man that Obama won’t try to “mix it up” with him. I think Gramps came prepared for a bar room brawl but had to fall back on Joe Plumber for his defense.

I’ll agree this was McCain’s best outing yet. But that’s still not saying much.

The split screen tells the story – McCain is an alien. He’s spooky.

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Martin Eisenstadt:

If Steve Schmidt had any hair left, I hear he would have been pulling it out tonight. He reportedly screamed at John’s debate prep team tonight (out of earshot of reporters, of course). “You idiots – he’s related to Charles Keating… of the Keating Five scandal!” They thought they had a real live Joe Six-Pack who’s spurned Barack Obama’s tax plan. But what they forgot to do was check on Joe Wurzelbacher’s background.

Turns out that Joe Wurzelbacher from the Toledo event is a close relative of Robert Wurzelbacher of Milford, Ohio. Who’s Robert Wurzelbacher? Only Charles Keating’s son-in-law and the former senior vice president of American Continental, the parent company of the infamous Lincoln Savings and Loan. The now retired elder Wurzelbacher is also a major contributor to Republican causes giving well over $10,000 in the last few years.

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So what happens when you get Joe Six Pack and Joe the Plumber in the same room with that lady from Nantucket?

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It turns out that Joe “The Plumber” Wurzelbacher isn’t even registered to vote!

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bobaloo said:
The Project Runway finale was great! What did I miss?

ga says:
the debate finale version of Project Runway

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ATW – I just saw that a couple of minutes ago and came by to correct myself, but you beat me to it.

Since he’s a registered Republican he doesn’t have to worry about being purged from the voter rolls because he didn’t fill out his form correctly.

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Joe may or may not be registered to vote but one thing is fact: he is not licensed to be a plumber.

And another tidbit – he is related to Charles Keating.

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I’m so sick of this. Of being freshly outraged every freakin’ day.

But folks, it looks like we’ve got a landslide a-happenin’. 350 or so will give me the full-body orgasm I so richly deserve.

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