Herein lies the trouble of blogging about personal finance during a financial crisis: information can degrade in a blink. If the Wall Street meltdown tells us anything about the next administration, it’s that there is no way that either candidates’ tax plans can be implemented as proposed.
I’m not exactly going out on a limb here; rarely does the tax policy of a president mirror the tax policy of the candidate. But in light of the massive bailouts underway, I just can’t imagine us being the recipient of any of the major tax goodies Obama and McCain have been proposing to toss our way. For McCain, the financial crunch likely means it will be impossible to extend the Bush tax cuts. For Obama, his middle-class tax break goes away. Depending on how it plays out in the halls of Congress next year, we the people are facing either rising taxes or scorching debt. Perhaps a combiniation of the two.
Of course, one can’t campaign under that premise, which means that both candidates get to spend the next five weeks pitching DOA tax plans during an economic crisis. As voters, we have the unenviable task of wading through an economic crisis with the understanding that we won’t get any real-world answers or information until after the election. So that’s fun.