In contrast to Hillary, Obama favors significant tax rebates for lower- and

[Satyagrahi]

middle-income households:

Closing Income Gap Tops Obama’s Agenda for Economic Change
By DAVID LEONHARDT
Published: February 2, 2008

***

If elected, Mr. Obama said he would to try to forge a popular mandate for policy changes that could reverse a generation of slow wage growth and outlast any one administration. At the top of his list would be shifting the tax burden more toward the wealthy and making investments — in health care, alternative-energy research and education — that would cost a significant amount of money but could ultimately lift economic growth.

***

Although Mr. Obama’s economic approach comes wrapped in his conciliatory rhetoric, it is in some ways more aggressive than that of Senator Hillary Rodham Clinton of New York, his rival for the Democratic presidential nomination.

He has called for shoring up Social Security by raising payroll taxes on very high earners, while she has not. He also favors a permanent tax credit of up to $1,000 for families in the bottom 90 percent or so of the income distribution, which makes his package of middle-class tax credits significantly larger than hers.

***

His approach puts him somewhat to the left of the Clinton administration but broadly in line with the Democratic Party now.

http://www.nytimes.com/2008/02/02/us/politics/02obama.html?ref=politics

Nobel Laureate in Economics Joseph Stiglitz thinks that this is the right approach:

How to Stop the Downturn
By JOSEPH E. STIGLITZ
Published: January 23, 2008

***

But middle- and lower-income Americans have been suffering for the last seven years — median family income is lower today than it was in 2000. A tax rebate aimed at lower- and middle-income households makes sense, especially since it would be fast-acting."

http://www.nytimes.com/2008/01/23/opinion/23stiglitz.html?scp=2&sq=JOSEPH+E.+STIGLITZ&st=nyt

[MH1]

1. He also supports bringing jobs back into this country

by closing offshore tax loopholes.

[MethuenProgressive]

2. How much is he offering for my vote? $1000? I say $1500, not a dime less.

It's in insult to see him try to buy votes. Especially for that little.

[Satyagrahi]

4. Joseph Stiglitz seems to think that it is sound economic policy.

And he knows a thing or two about the economy, being a Nobel Laureate and a pioneer of Information Economics.

[MethuenProgressive]

5. OK then, my vote is worth $1000.

:eyes:

[Satyagrahi]

8. You don't seem to understand that this is about the economy, as in

"sound economic policy". I wish that Hillary would adopt it as well. As Stiglitz explains, in a time of soaring deficits, it is important "to get as much bang for the buck as possible", and you get that by putting the money in the hands of those who are most likely to spent it immediately, i.e. lower- and middle-income households.

[papau]

3. a permanent tax credit of up to $1,000 for families in the bottom 90 percent - $200,000 $ less

does about zero for the poor and lower middle class where "income tax" is only the payroll tax.

[agdlp]

6. Clinton will have a tax reform but with fiscal responsibility + government debt under control first

Typical Obama populistic politics.
HRC wil also reform the tax system, and give tax credit for the bottom 90, but it will only be done when we have fiscal responsibility and not as a spesific election issue when the government have billions, and billions in debt.

[Satyagrahi]

10. Focussing on deficit reduction in a time of a recession is very bad

economic advise. In contrast, Obama's approach is not "populistic", as you suggest, but very sound economic policy backed by renowned economists, e.g. by Nobel Laureate Joseph Stiglitz.

Even Paul Krugman, who as you know is very critical of Obama, has questioned the wisdom of making deficit reduction a priority. And this was well before the recent economic downturn began:

I’m for pay-as-you-go. The question, however, is whether to go further. Suppose the Democrats can free up some money by fixing the Medicare drug program, by ending the Iraq war and/or clamping down on war profiteering, or by rolling back some of the Bush tax cuts. Should they use the reclaimed revenue to reduce the deficit, or spend it on other things?

The answer, I now think, is to spend the money — while taking great care to ensure that it is spent well, not squandered — and let the deficit be. By spending money well, Democrats can both improve Americans’ lives and, more broadly, offer a demonstration of the benefits of good government. Deficit reduction, on the other hand, might just end up playing into the hands of the next irresponsible president.

http://select.nytimes.com/2006/12/22/opinion/22krugman.html?hp=&pagewanted=print

[truedelphi]

13. Clinton's whole campaign has gone very "Rove"

They now are trying to attach a negative spin to the word "populist"
which is really nuts becaue the Obama camp is smart enough to return the favor by labelling her "elitist"

And right now, I think that the public would more willingly embrace a "populist" than an "elitist"

[truedelphi]

11. Ya know, I see Hillary as elitist.

The middle income person has lost their mortgage deduction in many high rent areas of the country. With nothing to offset it.

In fact the reverse is happening - as houses go into foreclosure, the rents in an area go higher and higher. So you have to work more overtime, or borrow using credit cards, or work another job.
I have paid three and even four times FOR GULDARN RENT what friends who are ten years older pay for their mortgage. And They get mortgage deductions. I just get a higher tax bracket.

The fact that a policy is populist shouldn't make it repugnant.
Iif Obama will stick by this campaign promise, I will vote for him happily on Tuesday and should he become the GE candidate, very happiy in November.

[Satyagrahi]

7. Care to explain?

This is from Obama's Web site (regarding the payroll tax):

Obama will create a new “Making Work Pay” tax credit of up to $500 per person, or $1,000 per working family. This refundable income tax credit will provide direct relief to American families who face the regressive payroll tax system. It will offset the payroll tax on the first $8,100 of their earnings while still preserving the important principle of a dedicated revenue source for Social Security. The “Making Work Pay” tax credit will completely eliminate income taxes for 10 million Americans. The tax credit will also provide relief to self-employed small business owners who struggle to pay both the employee and employer portion of the payroll tax. The “Making Work Pay” tax credit offsets some of this self-employment tax as well.
http://www.barackobama.com/issues/economy/#tax-relief

[agdlp]

9. When you paycheck arrives, what do you pay first. ? Hopefully your depth/hosing costs

Sure it makes sense, but the issue is:

First: Clinton and Obama do not know everything of the Bush mishandling of the economy. The full picture will first be known once in office and getting hand of all the internal numbers.

Second: When your paycheck arrives. What is the first thing you do? Well, most of us pay down the loan on the house and any monthly payment on our depth. First then you see whets left, and what you can use and prioritize in a fiscal responsible manner.

Throwing out tax rebates on a huge scale just shows the populist politics in play.

[truedelphi]

12. For those of us who are forced by the high rent costs

Of certain areas, and who therefore have no morgage deduction, I'll take any help offred.

How is it that the term "populist" is becoming a word used to smear?

Maybe it is the only tactic left for those supporting an elitist like Hillary.

[ugdude]

14. Hillary will give tax breaks to richer people than Obama will.

Vote Hillary for more Rovian economics.

[truedelphi]

15. It remains to be seen if Obama will go all Corporatist on us.

Probably he will, but I have to hope he won't.

[JFKgirl]

16. its obvious that hillary is looking after her own interests... as usual