AP Shocker: Experts Don't Like Obama's Tax Cut For Seniors
Shocking media honesty alert!!!
Here's something you don't see every day: a major American press outlet speaking ill of a campaign proposal from presumptive Democrat presidential nominee Barack Obama.
Yet, there it was moments ago in an Associated Press piece amazingly titled "Obama's 'No income Taxes On Seniors' Draws Critics."
Maybe even more surprising than the AP actually reporting critical assessments of the junior senator's plan to exempt from federal income taxes seniors who make less than $50,000 a year was the authors not citing anyone that supports Obama's proposal...not one single person.
Now, I know what you're thinking: this was either a Wall Street Journal or Investor's Business Daily article. Think again (emphasis added, photo courtesy AP):
"If you work hard and pay into the system, you've earned the right to a secure retirement," says a description of the plan on the Obama campaign's web site. "But too many seniors aren't getting that security, even though they've held up their end of the bargain. Lower and middle income seniors are struggling as their expenses on health and energy skyrocket while their incomes do not keep pace."
[T]ax policy experts in Washington are giving [Obama's plan] bad reviews. They see it as another subsidy for senior citizens, who already get federal help through Social Security and Medicare and often have economic advantages over other demographic groups. [...]
Some of Obama's allies in Washington think he's onto a bad idea.
"Most low- and moderate-income seniors already owe no income tax. Among seniors with incomes below $50,000 who do owe income tax, a significant number have modest incomes because they are retired but possess substantial assets," said Robert Greenstein, who heads the Center on Budget and Policy Priorities, a liberal think tank. "Given all the problems and needs the nation faces, targeting relief to this group isn't a priority."
The Tax Policy Center, a think tank run jointly by the Brookings Institution and the Urban Institute, gave the idea bad grades in a recent study of the two presidential candidates' tax plans. [...]
"The proposal would exempt comparatively well off, though not affluent, senior citizens from taxes and give them a benefit not generally available to working Americans," said the Tax Policy Center paper. It "helps only those low-income seniors who currently pay income taxes. Those too poor to owe any tax - arguably those most in need - would get no benefit."
Even the powerful seniors' lobby doesn't seem excited about Obama's idea. An AARP bulletin on the presidential candidates' tax plans barely mentions it, noting that Obama's proposal could partly offset additional taxes that Obama would impose on seniors through higher tax rates on dividends and capital gains.
Certainly, it's no surprise that the more people look at what Obama is proposing, the less they like it. Yet, what IS amazing is how folks in the press that have enabled this man's campaign are suddenly telling readers the truth.
Why might that be?