Both Barack Obama and John McCain are going to give tax cuts to people who don't pay any federal tax on income. Yet McCain calls Obama's plan welfare for the middle class, while his health care credit isn't. Fancy that.
Oh, and by the way, we all pay federal taxes anyway. How about the federal tax on a gallon of gasoline? How about the big chunk taken out for Social Security and Medicare? For those on the bottom end of the income scale, that tax credit goes right out into the market place.
And if your convince, as John McCain is that this is welfare, send the credit money back. Don't keep it. The government could save even more money that way. Maybe we'll get some of the $800 billion of CORPORATE WELFARE money back from those proud Wall Street conservatives. Ya think?
The following AP story is a perfect, I mean PERFECT, example of how out of whack and ideological Republicans are.
Sen. John McCain, trailing in the polls, fired the first volley, likening his rival to the socialist leaders of Europe and saying he wanted to "convert the IRS into a giant welfare agency, redistributing massive amounts of wealth at the direction of politicians in Washington." McCain added, "Raising taxes on some in order to give checks to others is not a tax cut; it's just another government giveaway."
Obama responded, saying his Republican rival "wants to cut taxes for the same people who have already been making out like bandits, in some cases literally. John McCain is so out of touch with the struggles you are facing that he must be the first politician in history to call a tax cut for working people 'welfare,'" Obama said.
Obama advocates a tax credit of up to $500, depending on income … millions of individuals and families who do not make enough money to pay income taxes would receive their cut in the form of a government check, known as a refundable tax credit. McCain seized on that point as he attacked - even though he has proposed giving tax credits to those who pay no taxes as part of his health care plan. To finance those tax cuts, he proposes requiring workers to pay income taxes on the health benefits they receive from their employers.
McCain said, “Raising taxes on some in order to give checks to others is not a tax cut; it's just another government giveaway."
Referring to Obama's pledge that he will cut taxes for 95 percent of all Americans, McCain said, "How do you cut income taxes for 95 percent of Americans, when more than 40 percent pay no income taxes right now? ... Since you can't reduce taxes on those who pay zero, the government will write them all checks called a tax credit. In other words, Barack Obama's tax plan would convert the IRS into a giant welfare agency, redistributing massive amounts of wealth at the direction of politicians in Washington. I suppose when you've voted against lowering taxes 94 times, as Sen. Obama has done, a new definition of the term 'tax credit' comes in handy."
But Obama differed.
"It comes down to values in America. Do we simply value wealth, or do we value the work that creates it?" he asked.
"Sen. McCain wants to give the average Fortune 500 CEO a $700,000 tax cut but absolutely nothing at all to over 100 million Americans. I want to cut taxes - cut taxes - for 95 percent of all workers," he said.
"It's time to give the middle class a break," Obama said, "and that's what I'll do as president of the United States."