Quote:
Originally Posted by scaeagles
I am talking about taxes paid from the upper income families and giving that money directly to lower income families in the form of a redefined tax cut. He refers to this as a tax cut, but it isn't a tax cut. They have paid no taxes.
|
You can say that now, but they have always been called tax cuts in the past so it is disingenuous to now say that they aren't. Yes, some tax credits result in cash payouts when the tax liability is reduced to lower than zero. You can disagree with this philosophically but such increasing these credits has always been rhetorically placed under the umbrella of tax cuts to whomever supports them (just as with John McCain's proposed $5000 tax credit for medical insurance which will be paid even if the user owes no taxes).
Also, it is possible to cut taxes for a person who doesn't pay any. If you have a tax obligation of $750 dollars and qualify for $750 in tax deductions you don't pay any taxes. But it is entirely possible for new tax policies to reduce your obligation from $750 to $500. Your tax obligation was cut, your tax deductions still reduce what you owe to zero.
Finally, you have used this formulation several times "Obama says that 95% of people will receive a tax cut but 40% of people don't pay any income tax, how can that then be true." (That isn't a direct quote but I think it accurately reflects and I don't want to go look for the direct quote; I'm sure you'll correct me if I'm wrong).
Two things. Obama almost always say "95% of working families" which is different from 95% of everybody and is essentially true (independent sources say 91-94%). However, I'm sure examples can be found of saying simply "95% of people" by Obama or campaign surrogates. When this is said, it is misleading.
However, you do something rhetorically in your formulation of the question that is also misleading. You change the units of measure. From "taxes" to "income taxes." Income taxes do not include the entirety of a persons tax burden as you well know. Even people who end up paying no income taxes still (if they have any legitimate income at all) end up paying payroll taxes. And part of Obama's plan is a tax credit against payroll taxes. So, even if that doesn't bump it up to 95% of all people, this is another way you get people who pay no federal income tax still getting a tax cut.