The focus of the Democratic argument against McCain is that he’s for the Bush tax cuts. Let’s think about what tax cuts mean for the economy. We have a housing problem – too many houses are up for sale and too few people can afford to keep their home or buy the ones on the market. As a result, people in desperation to unload their house will sell it at a firesale price, thus hurting everyone’s expected property value, thus putting further pressure on all our HELOCs, which are based on this expected value. To solve the housing crisis we want housing prices to stabilize and to start growing again through free market forces, not government meddling.
SO: Will increasing taxes help or hurt this problem? They will HURT because people will be giving more money to Uncle Sam and will have less money to build up a down payment and buy a house. It’s that simple. Assuming that Obama will give you those dollars back eventually, that doesn’t do any good – the crisis is now, not in 2 years when you get your tax refund!
Well, Obama wants to tax JUST rich people, right? This is not true by the way, but let that bide. Well, if you have a house that you can’t afford and you want to sell, can’t a rich person buy it as easily as a poor person? Would you rather have a rich person buy the house since they probably don’t have to get a big mortgage? So how does taxing rich people more help the housing problem? It doesn’t, so don’t let him do it.