John McCain and Taxes

Once more, John McCain demonstrates he doesn't know much about economics, or, for that matter, Federal tax policy. This is funny considering the fact that he's spent decades in Washington (since 1982) writing and passing tax and fiscal policy. You'd think he'd have a handle on it by now.

Senator Obama says that he doesn’t want to raise taxes on anybody over — making over $200,000 a year, yet he wants to nearly double the capital gains tax. Nearly double it, which 100 million Americans have investments in — mutual funds, 401(k)s — policemen, firemen, nurses. He wants to increase their taxes. - John McCain on This Week

Of course, money in 401(k)'s isn't taxed as capital gains. It's not taxed at all.

Investments contained in 401-K's (Or in the case of 'policemen, firemen' usually a 403-B), pensions, IRAs, tax deferred variable annuities, and similar retirement vehicles aren't subject to capital gains tax -- they're not taxed at all. Changing the capital gains tax rate will have zero effect on them. Withdrawals from tax deferred accounts by retirees are generally taxed at whatever the income tax rate is for that person at the time of withdrawal (Which, incidentally, is usually a hell of a lot more than the current long term capital gains tax rate, yet another way to rip off the middle class).

This feature of pension and retirement accounts is about as fundamental as it can get in the retirement planning and tax preparation business. Most laypeople over age 40 know this; let alone rookie financial advisors studying for the series 7, or a barely legal teen on her first day at H & R Block. For McCain not to know that would be, well, terrifying, as this is something that will affect upwards of 80 million freakin retirees during his potential Presidential term[s]. The other possibility is he knowingly lied. - DailyKos

As my wife likes to say, this is Bush's America, whatever we assert loud enough is true. So if John McCain can assert that 401(k)s are subject to capital gains taxes, I can assert that John McCain called his wife the "c" word (oops, that one is actually true), how about John McCain was bribed by shady financiers (oops, true again!). How about John McCain sleeps around (dang, true too). John McCain will say anything to get elected? Yep. Also true.

Hey, maybe George Bush is right, you can say anything and have it be true!