October 16, 2008 –   Joe the plumber.  If you listened to the debate last night you would think John McCain was giving him all the help in the world while Barack Obama was bleeding Joe and his chances at having a business dry.  But here's the reality - which Obama failed to mention, perhaps caught off-guard by the line of attack:  with the rescue plan Obama introduced Monday, Joe the plumber could get a massive tax break.

Under Barack's plan, Joe could get thousands and thousands of dollars of help for his new business.  Obama's new plan gives a $3000 tax credit for each new job created for the next two years.  So, if Joe's business creates a new job, he would get $3000.  If he creates 10 new jobs, he would get $30,000 in tax cuts for his business.  Not bad, eh?

In fact, what Barack Obama could have pointed out was that unlike John McCain, whose tax plan follows the old formula that caused the current mess by simply handing money to businesses without ensuring that they use it to create jobs - ie, allowing them to use it to give themselves big bonuses - Obama's plan helps Joe only IF he creates new jobs.  Last night John McCain said Obama was stopping Joe from creating new jobs by hurting his business.  In fact, John is just going to give Joe more money to keep regardless of if he creates jobs, while Obama says, great, create your business, but we're not going to help you use it to set yourself up with 13 cars and 7 houses like John McCain.  If you create jobs, we'll reward you then.

In addition, Barack's point - which he could have explained better - about spreading the wealth around means this:  with Barack giving 95% of working families tax cuts, Joe might actually end up with customers who can afford his services.  Right now, Joe can start all the businesses he wants, but no one has money to patronize them.  If the plumbing is faltering in Joe American's house, so be it.  Families are having to live with the leaks and drips and old piping that leaves a bad taste in their water.  Obama's bottom up tax cuts are essential to assuring Joe will have people who can afford to use his business.  John McCain's tax plan allows Joe to set up his business, but neither requires him to actually creates jobs, nor does anything to address the fact that people can't afford to buy plumbing or other services, nor will be able to anytime soon.

So even John McCain's example of Joe the Plumber actually shows why Barack's plan would be better - for Joe, if he creates jobs or wants customers - and for America businesses in general, if they want to have customers anytime soon.  It was a nice trick to catch Barack off guard, but it doesn't change the fact that Barack's plan is one that actually would help both Joe and America, while John's would follow the old model that has been bleeding America dry.

And honestly, Joe the Plumber's indignation is silly - what he is saying is, "How dare you make me pay my fair share of taxes because I've now put a label on myself of 'business.'"  If Joe worked as a plumber for a business and earned $250,000, he should pay his fair share.  And if he earns that for himself as a "business," the same should apply.  If he creates jobs, that's another story, and Obama gives him a break then.  John McCain gives him tax cuts we can't afford even if he just uses them to buy himself a few Lexuses simply because he now labels himself a business  Yes, my friends, the same old tax dodge that has bled America dry.

See BEN TERTON'S ARTICLE on Obama's tax rescue plan for a more detailed explanation of Obama's plan.

UPDATE: Turns out John McCain was lying when he said Joe's taxes would go up under Obama's plan. Joe just wants to buy a business for $250-280K, that's not what he earns - he earns far less and, as luck would have it, would benefit far more from Obama's cuts than McCain's. See ABC News story.

So, big surprise, Joe the Plumber's case was not presented factually, but dishonestly. What Joe actually turns out to be is not an argument against Obama's plan, but a clear example of the sort of misinformation fed by talk radio and GOP condidates to people like Joe the Plumber, telling them the Democratic plans will hurt them and the GOP will help them, when, as in this case, exactly the opposite is true: for Joe, Obama gives more help, McCain gives Joe less and instead hands lots to people far richer. That's how a generation of intelligent white males have been tricked into voting against their self-interest, tricked into handing lots of cash to rich people on Wall Street.