Finally something to get excited about!

I was a bad American and didn't watch the third and final debate the other night, so I thought I'd redeem myself by reading the transcript. This may have been better, since it let me focus purely on what was said. Well, I have to say I was surprised and thrilled with something Obama said in reference to taxes. Prior to this, the raising/lowering taxes debate and question of who deserves tax cuts was driving me crazy, especially given that Obama's plan doesn't even strike me as extreme. I mean, he repeatedly references the middle class, then assures everyone that "...if you make less than a quarter million dollars a year, then you will not see your income tax go up, your capital gains tax go up, your payroll tax. Not one dime." Phew! When I hear statements like that, I'm reassured that Obama is looking out for the financial interests of people like me, just your average Jill Six-Pack $250,000-earning 'middle class' folks!

So yeah, this all struck me as so ridiculous, and crazier still, I never heard anyone in the media say "So, uh....$250k a year is middle class?" I realize that politics is a game where candidates seek to please the broadest range of people possible, but with a median household income in the US of $44,000, come on now.

So here's what got me so excited: Obama not only said unequivocally that he'll raise taxes on the very wealthy, he put himself out there as someone who could stand to pay a bit more to make life easier for those at the bottom. And by the way, to clarify what is meant by these apparently wild and crazy tax increases, Obama proposes to simply return to a Clinton-era tax rate on those in the top tax bracket (those earning upwards of $370k). That is, he wants to bump them up from a 35% to 39% tax rate. Is that so horrifying? Check this out:

Per 2008 tax brackets, a single individual without children pays:

• 0% of the first $8,950 of income (because net income is zero after $8950 standard deduction and single exemption)
  
• 10% of the income between $8,951 and $16,975,
• 15% of the income between $16,976 and $41,500,
• 25% of the income between $41,501 and $87,800,
• 28% of the income between $87,801 and $173,500,
• 33% of the income between $173,501 and $366,650, and
• 35% of the income exceeding $366,650.

Looking at this, I'm not thinking 39% sounds unreasonable. In fact, what I'm thinking is, why don't we change the upper limits on the brackets so that a single person making $170k a year (a single person, people!) shoulders substantially more of a burden than one making $41k, rather than separate them by a mere 3 percent. I realize these rates may seem high if you look at it in terms of total tax paid, but if you look at it in terms of net income, I think it is equitable. (Though what I'd really like would be for a large chunk of the proceeds from the tax increase to be funneled directly into programs benefitting the poor.) I think that the guy earning $360k will get by okay on the $200-something thousand he's left with, though I realize the yacht purchase may have to be put off for another couple of years, and my heart aches for him, really it does.

So now for that debate snippet I keep referring to:

MCCAIN: Who -- why would you want to increase anybody's taxes right now? Why would you want to do that, anyone, anyone in America, when we have such a tough time, when these small business people, like Joe the plumber, are going to create jobs, unless you take that money from him and spread the wealth around.

OBAMA: I'm not going to...OK. Can I...

MCCAIN: We're not going to do that in my administration.

OBAMA: If I can answer the question. Number one, I want to cut taxes for 95 percent of Americans. Now, it is true that my friend and supporter, Warren Buffett, for example, could afford to pay a little more in taxes in order...

MCCAIN: We're talking about Joe the plumber.

OBAMA: ... in order to give -- in order to give additional tax cuts to Joe the plumber before he was at the point where he could make $250,000.

Then Exxon Mobil, which made $12 billion, record profits, over the last several quarters, they can afford to pay a little more so that ordinary families who are hurting out there -- they're trying to figure out how they're going to afford food, how they're going to save for their kids' college education, they need a break.

So, look, nobody likes taxes. I would prefer that none of us had to pay taxes, including myself. But ultimately, we've got to pay for the core investments that make this economy strong and somebody's got to do it. [So rational, balanced!]

MCCAIN: Nobody likes taxes. Let's not raise anybody's taxes. OK?

OBAMA: Well, I don't mind paying a little more.