Law: Why I Hate Obama as a Potential President
February 27, 2008
One word. Policy. It seems to have been the forgotten topic of this primary season. Every time Obama talks, its change change change. Hope hope hope. So what is this change that he has created such hope about? To quote a friend of mine, its change in your pocketbook. What kind of change in your pocketbook? Well, if you are reading this blog because you want to be a doctor or a biglaw associate, then the change is going to be pretty severe.
Lets assume that Obama is able to pass two of his three big policy initiatives (and when I say policy initiatives I mean answers when he is pinned down and forced to talk policy) and he rolls back the Bush Tax Cuts while uncapping social security.
What does that mean? Well, it means taxes for first year lawyers go WAY up. How far? If I am a first year associate immediately after graduation (year 2-3 of the Obama presidency) Obama’s plan takes an ADDITIONAL 17-20K out of my pocket each year. In addition to this, since associate bonuses are generally payed out of a pool of additional bonus funds, a pool that will be significantly reduced by increased firm contributions to social security, that number could get much higher. How does this work?
Obama will increase the taxes on roughly 35K of a first year associate’s base pay and their entire bnus by 3%. Next, Obama will uncap social security. This means an additional 6.5% tax on about 60K a year of base pay, and another 6.5% tax on 15-35K of first year bonus. Fantastic.
In addition, my employer has a 6.5% increase on the same checks I am taxed on. This means, almost certainly, that the amount my taxes are inreased in that way will be decreased from my bonus. I’m losing on both ends! Awsome.
Doctors, you are in pretty much the same boat.
Change Change Change……. all out of my pocket book. Awsome.