Obama tax plan: $80 billion in cuts, five-minute filings

[killbotfactory]

"I'd reward work by providing an income tax cut of up to $500 per person -- or $1,000 for each working family -- to offset the payroll tax that they're already paying," he said.

"Because this credit would be greater than their income tax bill, my proposal would effectively eliminate all income taxes for 10 million working Americans."

Obama also said he would repeal the Bush tax cuts for the wealthiest 1 percent of Americans.

"At a time when Americans are working harder than ever, we are taxing income from work at nearly twice the level that we're taxing gains for investors," Obama said. "We've lost the balance between work and wealth."

Obama also said he'd simplify the tax code so that any employed American with a bank account can do their taxes in minutes if they take the standard deduction. It makes sense, he said, because the Internal Revenue Service already collects wage and bank account information.

"There's no reason the IRS can't send Americans pre-filled tax forms to verify," he said. "This means no more worry. No more wasted time. No more extra expenses for a tax preparer."

Obama proposes funding the tax cuts by closing corporate loopholes, cracking down on international tax havens and increasing the dividend-and-capital-gains tax for the wealthy, he said.

http://www.cnn.com/2007/POLITICS/09/18/obama.taxplan/

You can read the entire speech by going here:
http://www.dailykos.com/story/2007/9/18/13131/1361

There is also this part of Obama's plan that they don't mention for some reason:

The third thing I’ll do is provide a progressive tax cut for America’s seniors.

Since the New Deal, we’ve had a basic understanding in America. If you work hard and pay into the system, you’ve earned the right to a secure retirement. But even though they’ve held up their end of the bargain, many seniors are struggling to keep pace with costs. And as so many Americans know, their worry becomes an entire family’s worry.

This strain has been greater since 1993, when taxes on social security benefits were raised. Millions of seniors saw their net benefits go down. They also had to take on the added strain – and sometimes cost – of filing a complicated tax return.

It’s time to give America’s seniors a break. So I’ll give retired folks the same kind of relief I’ll offer to working people. When I’m President, we’ll work to see that no retiree making less than $50,000 each year has to pay income tax. This will eliminate income taxes for about 7 million Americans, at a savings rate of roughly $1,400 each year. And 22 million seniors won’t even have to file a return and hire an expensive tax preparer.

And this...

Today, we have a mortgage interest deduction, but it only goes to people who itemize on their taxes. Like so much in our tax code, this tilts the scales toward the well-off. Only a third of homeowners take advantage of this credit.

I’ll create a mortgage interest credit so that both itemizers and non-itemizers get a break. This will immediately benefit 10 million homeowners in America. The vast majority of these are folks who make under $50,000 per year, who will get a break of 10 percent of their mortgage interest rate. For most middle class families, this will add up to about $500 each year. This credit will also extend a hand to many of the millions of Americans who are stuck in the subprime crisis by giving them some breathing room to refinance or sell their homes.

http://www.dailykos.com/story/2007/9/18/13131/1361

It is a really good speech, not just the usual tax blather. It's also nice to know he is going to go after off-shore tax havens.

[rinsd]

1. This is interesting

"Obama also said he'd simplify the tax code so that any employed American with a bank account can do their taxes in minutes if they take the standard deduction. It makes sense, he said, because the Internal Revenue Service already collects wage and bank account information.

"There's no reason the IRS can't send Americans pre-filled tax forms to verify," he said. "This means no more worry. No more wasted time. No more extra expenses for a tax preparer."

[truedelphi]

2. The income tax situation has gotten so out of hand that even

Tax accoutants would like to see it simplified.

In 1996 with an income under 20K, it took me twenty six hours to do my taxes.

And I am about ten hours under the normal what is it, 34?

It really sucks when you are an independent contractor.

[Nimrod2005]

3. Brilliant!

[Colobo]

4. Hillary fans should admit Obama is right once again.

[Dawgs]

5. They get paid not to admit anything but Hillary is kicking butt.

[Colobo]

6. LOL!