Can a Liberal/Democrat please give me a logical explanation how this will fix our economy?

This is more in response to Myles D:

What you're forgetting is that it's not just the cost of widgets that will go up. Milk, bananas, chicken, pants, tranny fluid, etc. will all go up too. So if everything you buy goes up in price, your $1000 extra you're getting back in tax breaks will not even be enough to cover those increased costs. So people like that will buy less stuff. So people who sell stuff will have to lay people off to keep from going bankrupt because people can't afford their higher prices that are really just increased because of taxes. So then more people will be unemployed, and the economy will get worse.

okay what folks like Myles D and other fail to see is that once the tax on the "Acme Widget Company" goes up then the business will pass that extra cost onto the consumer. So the Widget that use to cost $2.00 will now cost $3.00 to cover the new expenses that are being placed on the company. So while you have directly taxed the company that cost will be passed along to the consumer thus really imposing a tax per item on the average citizen.

Now lets just assume its a tax on the individual person not a company. So okay we will tax Warren Buffet more than the average citizen. Okay to adjust for the lose of income he will reduce his charitable giving and thus decrease the amount of money he donates to the United Way. In turn the united way will be hurt by the lack in charitable spending and will become more relied on government spending and programs. To pay for these increased uses of government services the government will have to increase taxing and spending. So either way the taxing will be placed on the c"common person".

Really no plan will work, its just a matter of what plan will do the least damage

Well im not a liberal or a democrat but I can explain what they are thinking. First of all raising taxes is needed because in order to fund the government and all of obama's plans, more money is needed. Without more money only the deficit will increase. Next with the increase fund, obama is going give everyone healthcare, which will make people more healthy. If people are more healthy then they can be more productive at work. Also since people dont have the burden of spending money on healthcare that money the money spent on healthcare on other things wchi i guess contribute to the economy. Also part of the increase in the taxes will help to reduce the deficit. and lower deficit is key to healthy economy. Now the big key to Obama's plan is Trickle down economics, does not work. But Trickle Up economics will. Tax break to those earning less than $250,000 will give those people enough money to spend so they can actually stimulate the economy with this extra, $1000 or so a year.

This is in essence obama economic plan. In terms of your question, of how it will affect wallstreet, the increase tax burden on corporations will be lessened the value, but hopefully increase consumer spending by the middle class with the additional tax break will help to lessen the tax burden. and yes increase in taxes will help him to fund a lot of his programs which will help him to keep some of his campaign promises.

The key here is will the tax increase on the corporations and the wealthy be more than offset by the tax break on the middle class and lower class. History tells us no. But since what bush is doing isnt working maybe this will. thast about the only logical explanation there is, and yes to me it make absolutely no sense, but as far as I can understand the arguement thats seems to be it.

Raising taxes gives the government more revenue to help fix these problems; its just a matter of who you're taking it from.

McCain subscribes to the Reaganomics like "trickle down" economic plan where the rich are taxed less and the working and middle class more. The thought being that when the rich have more, they use the extra money to start business or invest, thereby strengthening the economy. However, there is little reason to believe this is true. We've tried it since 1980, and so far, the economy has weakened and the only industry to grow in America since then has been the debt collection industry.

With my dealings in business I know a lot of well off people, and the sentiment with them is that the government is wasting money by giving them more of it; they don't spend it to create jobs, it goes in the bank.

Taxes aren't solely for fixing the wall street crisis, they're about funding other programs we need. I just took a civilian visit of the local jail, they're grossly underfunded; we need money for things like that.

These couple of examples you sighted along with all of his other policies will put more money in the pockets of the middle and lower class and the money that the government needs to raise will be taken from the wealthiest people and the big corporations who have the deepest pockets. Generally speaking, he will discontinue the republican policies of the rich getting richer and the poor getting poorer. This will fix the economy by spreading around the wealth and bringing the class lines closer together.

Another policy difference between Obama and MCCain that will have a HUGE effect on the economy is the fact that Obama will get us out of Iraq where we are wasting billions and billions of dollars.

Sure...the middle class will have much more in their pockets. When the middle class has money, the economy grows. The top 5% will not be paying any more than they were under Ronald Reagan. The wealthy avoid or get out of paying much of their taxes and are undertaxed currently. They used to pay more but under the failed economic policies that started in the 80s and continued through Clinton and Bush they have paid far less and our economy is in the toilet, in part, because of that. We simply cannot continue to spend in this country without paying for it. Just like homeowners bought homes they couldn't afford, the feds have been spending FAR more than they take in. This has occurred under Bush who has expanded the federal government to huge levels. I don't know where the right gets the idea that we can 'not tax and spend'. If we want to spend (as we must) we simply must be able to afford it. By increasing taxes on the wealthy, there will be more money to spend, thereby actually paying for programs, bringing down the debt, and we can start to buy back our country from China.

Well, I don't know if we have an answer to the current crisis. Much of this was caused by the private sector and the mortgage crisis. The federal government also has something to do with it. I think Obama's answer is more regulation on the mortgage industry, and tax the wealthy due to middle class is struggling at the moment. I think neither candidate has talked about much of the reality of why are in this mess. People living way beyond there means is a huge cause. The goverment isn't really good role models either.. Look at our national debt.

It's not the ONLY thing that will help fix our economy. No one ever claimed that it would be a fix all by itself.

It will help the economy because (1) deficits are out of control, meaning that we're mortgaging our children's future to pay for the present wars; (2) raising capital gains taxes will restore fairness, because currently the very rich pay a lower overall EFFECTIVE tax rate than middle income people because of the lower capital gains rate; (3) raising taxes on the upper incomes will be accompanied by lower taxes on the lower incomes. When the working classes have more money to spend, everyone, including the rich, benefits.

This will not fix anything, it's not enough money. Warren Buffet said that his secretary pays a higher tax rate than he does, is that right, he doesn't think so?? I think it should be a flat tax, same for everyone. Cutting taxes to the richest people did help get us into this mess though. If you don't collect enough money in taxes we go in the hole and we are deep in a hole now! Tax cuts during a war??? Corporate subsidies and loopholes, we're being robbed and some think we should be smiling about how little we get from all the money us little guys are paying. Your Fox News/Newscorp paid only 6% in taxes last year, taking advantage of all the loopholes, I paid alot higher rate than that and so did you! This is really messed up!

Here is a Scenario under Obama's plan

Acme Company Produces Widgets

So Obama would raise the tax on Acme by 6% Because they have a net Profit of Over $250 thousand per year

So Acme raises the price of Widgets by $10 a piece

He would then, however, reduce taxes for the remaining 95% of Americans

After using the Tax Calculator I would get back an Additional $1000 - If I am a widget buyer I have a net profit of $990

So, Now that American Consumers our getting back $1000 or more in taxes they can afford to buy more Widgets, this increases sales by 10 to 20% for Acme and they actually make more of a profit, therefore nullifying the 6% tax increase. In fact business increases and they are able to hire more people to build widgets. this reduces unemployment, reduces the cost of unemployment benefits, and puts more tax payers into the system because they are now employed.

Now that theory has been proven to work, and given are current situation I would say the "trickle Down" economics has been proven to NOT work.

Also, the Current Corporate tax rate is 35%. Last year Exxon paid 7.8% most of which was offset by Government Subsidies (i.e paid for by our tax money) you and I pay 25% . The working American's are getting the short end of the stick

EDIT: T.K. lol..so you say good luck getting anyone to answer Lefties only ...blah..blah ..blah..But you didn't answer it and others did - so you did what you accused others of doing..typical Republican

Raising the CGT on short-term investments is a good thing to do...have you not been paying attention to whats going on right now?

When you consider the media wage has stagnated since 2002, but average wages have increased that means those at the top are increasing their earnings, but not those in the middle. Raising the taxes on them may help spur the decision to reinvest in your business rather than your position.

Miles D, he is not raising taxes on businesses that make over $250,00, he is raising taxes on INCOME over $250,000. If you need help on figuring out the difference between the two, look at what a burger costs at McDonalds and look at what the person making the burger earns there.

And what is wrong with moving taxes back to what they were under Reagan? Our economy has slowly eroded since that time period.