So I promised a big post – a magnum opus, if you will – on the economy. I have since scaled down my lofty ambitions to just go over a few items, expecially given the speech that President-elect Obama gave on Thursday announcing a large government-sponsored economic recovery plan. He touched an many aspects of the plan, a few of which caught my ear.
The first topic is one of my favorites, one that I really love and I know a lot of you do as well…taxes. Obama said that part of two bajillion-million (okay, $800 Billion) package is tax cuts. Woohoo! I mean, any chance to get back part of my hard-earned money from the government is a cause for celebration. Quite frankly, government (at all levels) takes way more than enough. However, there is more to this than meets the eye.
Obama stated that “95% of working families will receive a $1,000 tax cut – the first stage of a middle-class tax cut that I promised during the campaign and will include in our next budget.” If this tax cut lines up with similar statements that he and his team made regarding taxes during the campaign, that means that many of those getting tax cuts didn’t actually pay any income taxes at all. In effect, a payout from the government.
And what about the 5% that aren’t getting a tax cut? Why don’t they deserve a tax cut? They already bear a disproportionate burden of our tax base, and also tend to be the ones that are the linchpin of our economy: those that own or heavily invest in business enterprises. While I understand that our tax system is progressive (read that leftist), that doesn’t mean that we can’t give the higher brackets a tax cut. They would still be in the higher brackets, therby maintaining our “progressive” system.
A word on class warfare: the Democrats, for years, have couched their economic views in terms of the middle/working class versus the rich. The unfortunate part about this is that, at a time when the best course of action would be to cut corporate income tax rates (as well as personal income tax rates), there is no way in h-e-double hockey sticks that Obama (or anyone else that pays dues to the DNC) could mention that without a veritable fire storm of criticism. Can you imagine the moveon.org types? Why, the New York Times might even have a critical word or two to say about Obama. Here is a word of advice for my Democrat bretheren – go to your bookshelves, take out your copies of Marx, and throw that crap away! Marx’s theories have been proven for what they are, and have done little in the West but help to engender an adversarial relationship between labor and capital, which has done little but hurt those on the labor side of the equation.
Okay, this post now has the potential to be long, which is saying something on this blog. So I will continue this conversation on another post…