Sunday, November 02, 2008

No, Folks. Obama Will NOT "Tax the Rich."

Only the truly ignorant (or willfully stupid) actually believe that Obama will "tax the rich."

Here's the reality.

Our own history shows that the very wealthy benefit from leftist policies of high tax rates, “targeted” taxation and industrial policy.

The ugly truth is that the really wealthy can manipulate the political system to their own ends better than ordinary people. They can lobby for specific tax breaks that only they can take advantage of. They can get government trade protection for their companies. They can get bailouts. If all else fails, the truly wealthy can simply relocate their wealth into whatever area the government policies du jour make the most profitable.

In the extremes, they can simply sit on their wealth and wait for the political winds to change.
The history of Europe since WWII has shown that it really pays to be a big company in a socialist country. Socialists like stasis. Socialist politicians like to guarantee jobs. They like predictable tax revenue. To this end they select a handful of major companies and in return for heavy regulation, protect them from internal and external competition. The largest companies in Europe are much larger compared to the size of their national economies than are the largest companies in America. The largest companies in Europe also keep their top positions while a great deal of turnover by comparison occurs in American companies.

America saw the same thing happen between 1945-1980. At the zenith of the Left’s influence in America the tax code grew so riddled with loopholes and shelters that the wealthiest paid little taxes. For three years in the 1970s, Malcom Forbes, then the world’s richest man, paid zero income tax. After the Reagan tax reforms, such a thing would be unthinkable today.
The Democrats want to put us on a road back to the 1970s when the rich got off scot free, corporations grew fat and lazy behind trade barriers and high taxes, and inflation and deteriorating government services slammed the middle class. It will happen again. The perverse outcomes are guaranteed by the incentive structure built into our political system.

Why do we have to go through all that again?

If "the rich" were actually heavily-taxed, do you think for one second that Teresa Heinz-Kerry would have a dozen homes all over the world? That the Kennedys would? That Bill Gates and the "Sage of Omaha" would have billions (with a "b") to dump into "charities"?

Be serious.


Anonymous said...

What an inane post; you are really grasping at straws Dad.

Only you could criticize the philanthropy efforts of a man who has set out to give away all but 1% of his money.

Anonymous said...

This is absolutely correct and why you will not see much of a panic when the Big O gets elected.

Lefties will have to find something else to grump and moan about. Their crowd is in power and the rich will be getting richer.

jimspice said...

That's really about the most simplistic rundown of the situation I've seen in some time. I can assure you I am not willfully stupid, and if I were truly ignorant I guess I wouldn't know it, now would I. But I believe Obama when he says his tax increases will be limited to the more well off.


Dad29 said...

"Simplistic" does not mean "untrue."

And "more well off" now means $100K in income, or so.

Now you're educated.

Anonymous said...

My family's fortunes have flourished in spite of who the current POTUS happens to be. I just prefer to see a republican so I know the less fortunate are being served better then they would be under a tax'm democrat.

Dan said...

Spice, you are among the ignorant and stupid. The Democrats have already pledged, promise etc. to roll back Bush's tax cuts, so your taxes will go up, unless you earn nothing. The poor, middle class and rich will all have their taxes raised by Obama and the Democrats. get some education, Spice so you won't be so ignorant and stupid.

Other Side said...

You'd never know it from his rambling and not very nice comment, Jim, but Dan claims to be a teacher. He represents a good case for eliminating tenure.

Pity the children.

jimspice said... your taxes will go up, unless you earn nothing.

Saying something over and over does not make it true. The levels of tax rate rollbacks are very clearly stated in Obama's tax plan -- over $250K married, $200K single -- so I'm in the clear.

Dan, I understand you have have a deep seeded mistrust of Mr. Obama, but I don't. He is saying what I have been thinking for years. I wouldn't even mind paying more taxes as long as the tax structure is strongly progressive.

As for the namecalling, it doesn't bother me, but it really does reflect poorly on you. And if I did take your advice and "get some education" I'd probably be accused of being an elitist.


Dan said...

Spice, part of the Democrat platform is to roll back Bush's tax cuts and Obama doesn't have to do anything. They will let the tax cuts expire and Obama can say and truthfully say, he could do nothing about it. Notice, I did not blame Obama, I blamed the Democrats. So, yes, your taxes will go up.

The Asian Badger said...

Actually, the really wealthy know about the Cayman Islands, Gurnsey, Singapore, etc. The middle class always get hit hardest because that't where the money is.

@Jimspice..I'm glad you won't mind paying more taxes, because you're going to. Progressive tax structure do nothing to help the economy or tax revenues.