Both candidates’ tax plans have merit. But one of these plans (Obama’s) makes more sense in light of current economic conditions.
McCain’s plan focuses on increasing investment in business. This is highly desirable at times when business is expanding and needs tax savings both to buy new equipment and to hire more help. This is obviously not what businesses plan to do today, however, as we enter what looks like a long and deep recession.
Obama’s tax plan puts more money into the hands of low and moderate wage earners. This extra money would almost certainly be spent on goods and services,
These days businesses need customers who can spend a lot more than they need tax relief. Indeed, if you don’t have enough customers you won’t have to worry about taxes. You don’t pay any tax on losses. And you pay less tax on less income in a down period.
The relationship of taxes to the general health of the economy is clear. If the tax issue is important to you, Obama’s tax plan in these perilous times is the better way to go.