Edit: That quote is funny. He is saying what I said. The positive effects of more revenue and more money in the pockets of the private citizen are positive, but the lasting effects (efficiency gains) can be far different than the short term.
There is another issue, this doesn't address his plan. People are not better off today than they were 8 years ago. Their real income is lower.
Obama's plan is to expand the graduated income tax. Meaning lower taxes for lower and middle income families (Let's say as an example: bottom ~40%), keep them the same for middle to upper income, and raise rates them for the wealthy (mostly through eliminating the caps the rich have on Social Security Taxes).
This can be argued against or for. There are arguments against it, I am a libertarian so I am not to comfortable with it myself. But I look at it from the realist perspective - the elite pay for the services of the masses to keep them from revolting. Sad but that is the way it is.
My ideology isn't very pragmatic, so I vote Democrat.
What would this do for the economy?
The lower and middle class would spend the difference raising consumer spending and production instead of capital investment.
I would cite regulation, but I know you will simply ignore it.
