Did the math - Joe the plumber was wrong

[marco86]

Assumptions -
Joe is married and makes 70k per year
Saves 5k per year currently to buy plumbing business
Savings nets 6% after taxes
Plumbing business will net 350k per year (S corp)

Obama plan -
Obama Plumber saves enough to buy the plumbing business in 92 years (age 124)
Starts earning 350k per year (100k taxed at the higher rate)

McCain plan -
McCain Plumber saves enough to buy the plumbing business in 95 years (age 127)
years 95 through death, McCain Plumber will save 4,000 per year, looking
only at the income on the plumbing business
However, Obama Plumber purchased the business after 92 years, so he has approx 500k more in after tax savings by the time that McCain Plumber buys his business.
The 500k will earn after tax 19.5k per year so although taxes are lower at that point for McCain Plumber, Obama Plumber is better off and his wealth increases at a faster pace.

This is all silly because the fact is Joe is long dead in either scenario. but here is the point:

McCain plumber is worse off every single year and has less chance of achieving the "American dream" than Obama Plumber. Obama Plumber can accumulate savings to buy the business sooner, but more realistically, has a better chance to save money to retire, or send his kid to college, or air conditioning school, to make the real money.

[FLyellowdog]

1. He's worse than wrong...he's an idiot.

[iceman66]

2. Idiot even ADMITTED that he would benefit more from Obama's plan

but he's supporting McCain anyway - a "real American".

Just goes to show you that you can't reason with a Freeper!

[FLyellowdog]

4. He loves his new fame....poor baby.

:nopity:

[marco86]

5. Who is the real idiot

Joe the plumber, who is just an idiot, or McCain Palin and the RNC, who bet their bankroll on the idiot. Granted they will lose no matter what, but now they have to undo even more damage to their intelligent, reasonable members (which is actually less than 10%, based on the amount of repubs still willing to vote for their pathetic combo)

[iceman66]

6. They rely on idiots like this to win elections

How many Freepers do you think actually make $250K+ and would actually benefit from Republican economic policy? Damn few I'd bet.

[Lumpsum]

3. We all know why Joe the Redneck and his redneck middle class constituency don't support Obama...