So shouts one of Delaware’s more respectable bloggers…

Oh, no. The depression sets in. It’s time to switch my party affliation for apparently Obama’s tax plan will cost us way too much…. Alas, he was doing so well….

But I wondered how that could be? For within the last week I had posted this chart showing exactly how Obama’s and McCain’s tax plans would affect each economic layer of taxpayers.

And what exactly is a Marginal Tax Rate, anyway… I had thought I had heard of everything by now?

The marginal Tax Rate is defined as the amount of tax you would pay on your last dollar of income…

If you make $25,000 it would be the rate you paid on that 25,000th dollar. The same if you made $50,000, $100,000 or $100,000,000. Whatever that last dollar is that you earned, the rate of tax is what is measured…

To see the silliness of this example, take Charlie Copeland’s first $250,000… On his first dollar he pays no tax… The pays very little up until he crosses $100,000. He then pays more after $150,000 and still more after $200,000. He then pays more on his last dollar as it crosses the $250,000 barrier. Darn, if only he had made 249,999 dollars instead…. 🙂

But Charlie doesn’t bother knowing all this… He just turns to the tax table in is IRS guide and pencils in the amount of tax his category is given… Of course someone in a land, far, far away used all those calculations to determine what that amount actually was, but……. in real life… there is no such thing as a marginal tax rate…. ( There actually is, but as you see, practically speaking, it is rather irrelevant..) You pay the averaged, or effective, rate…

So why is this even being brought up? The headline gives it away… It might swing votes for those unknowing as was I until just a few moments ago, as to what exactly a marginal tax rate…..was…

In truth, this figure was pulled because it was the only one which could be found, to support Palin’s and McCain’s assertion that Obama would cost more in taxes… The headline is BS; one our local poster should have caught…

Of course Obama will cost some people more in taxes… Thank heavens! But it will only be those that can well afford it… Isn’t it about time they finally ante up for once, and pay their fair share of the tax burden? Now, because of Republican policies, the rest of us today are just struggling to survive. We sure can’t help bail out our government that put itself into debt just to make those favorite few, wealthy beyond all dreams…..