Joe exposes candidates' sharp divisions

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By Donald Lambro

'08 ISSUES

John McCain and Barack Obama have starkly different views on taxes, just ask Joe the Plumber.

The presidential candidates used Joe Wurzelbacher of Toledo, Ohio, as a prop in their final debate, sparring over how their tax plans seek to generate prosperity and benefit average, hardworking Americans.

Mr. McCain, Arizona Republican, says that stronger economic growth flows from low tax rates that unleash private savings and investment capital to expand businesses or help people like Mr. Wurzelbacher to purchase one.

He says Mr. Obama's plan to increase taxes on those earning more than $250,000 will hurt small-business owners and is an effort to redistribute wealth.

But Mr. Obama, Illinois Democrat, says that the engine of the economy is the nation's vast working class and that transferring some of the nation's wealth from upper-income Americans to lower-to-middle-income workers will help lead the country out of recession.

"McCain appears to be more concerned about how higher tax rates affect overall economic growth, but Obama says the distribution of the economic pie from all his refundable tax credits for those at the bottom outweigh any adverse economic effect of higher rates," said economist Gerald Prante at the nonpartisan Tax Foundation.

Mr. Obama would raise taxes on the wealthiest 5 percent of income earners and redistribute much of that money to lower-income Americans through refundable tax credits or checks; keep the 35 percent tax rate on corporations; and raise taxes on investors, energy companies and businesses that move parts of their operations overseas.

"Obama's focus is on giving working families a tax break, and rolling back the upper tax levels that [President] Bush gave to the very wealthy, the net effect of which is to make the tax system more progressive," said Roger Hickey, co-director of Campaign for America's Future, a liberal advocacy group.

"Obviously, giving a tax cut to lower- and middle-class workers will stimulate the economy," he said. "But his economic program is not so much driven by tax cuts as it is by investment to get the economy going for everyone."