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Joe Wurzelbacher or Samuel Joseph Wurzelbacher of Toledo suburb of Holland, Ohio, is arguably the most famous “plumber” in US in recent times. Joe shot into limelight after he met Senator Obama while the latter was on his election campaign of Ohio. In the six minute discussion that took place by and between the two, Obama explained his tax plans in front of the Press.
Joe the Plumber and Obama Tax Cut Plan have thus assumed significance in the ongoing race to the White House especially after Senator McCain raised the issue in recent presidential debates. Wurzelbacher told Obama that he being a plumber was hoping to buy a business, which nets $250,000 to $280,000 a year. Incidentally, $250,000 is the magic number at which Obama has proposed to make a hike in the taxes. Joe feels that Obama’s fiscal proposals would compel him to the next slab of taxes.
In an event, if Wurzelbacher’s proceeds, being the owner of the business hit $280,000, then, the extra $30,000 would be taxed at a higher rate. According to tax planners and financial analysts, the additional tax would be to a tune of $900, which, in all probability would be more than the proposed provisions of Obama’s tax plans which suggest a 50% tax credit for health care and exclusion of the capital gains tax in the cases involving small businesses. These probable changes to capital gains and commercial taxes are almost certainly going to be lot more noteworthy than any revenue tax rate changes that Obama might make in the future.
The Illinois Democrat’s proposed tax relief plans which he announced during the 2008 US Elections would result in $80 billion or more in tax cuts along with a provision for most Americans filing their taxes in just five minutes. Obama's tax cut plans are in similar lines with those of Senator Hillary Clinton and Senator John Edwards. Further, Obama has plans to fund the tax cuts by closing corporate lacuna and escalating the dividends and capital gains tax for the affluent.
Obama's tax plan primarily aims to provide the biggest cuts to those who actually make the least.
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