Spreading the wealth? US already does it (in which I fisk Charles Babington's AP article about it!)
John McCain is pouncing on Barack Obama's call for shifting more wealth from richer Americans to poorer ones, likening it to socialism.
socialism, in which the gov't distributes the wealth as it sees fit, always taking it from the taxpayer; always claiming to spread it around to the disadvantaged.
His remarks win applause at campaign events. But they ignore the nation's long tradition of redistributing huge amounts of wealth through tax-and-spending policies.
They do not ignore our nation's bad habit long tradition of redistributing wealth; they ( whoever they are) oppose it now and I hope, opposed it during the long, traditional march.
Placing a heavier burden on the wealthy has been a cornerstone of the federal income tax since its inception in 1913.
Duh. That was the Progressive point of Income taxes. That does not make it right, wise, efficient, or beneficial to anyone.
Under its "progressive" formula, in which the wealthy pay higher tax rates, the richest 5 percent of Americans now pay well over half of all federal income taxes.
Which is IMO not a good idea. Everyone should be paying something for gov't services, but even if one thinks letting the poor pay nothing towards gov't services is a good idea, one should be able to recognize that using the "pay their fair share" excuse for raising taxes on the 5% who already pay "well over half of all federal income taxes" is contradictory. If we wanted them to pay their fair share we would drastically cut their taxes.
Meanwhile, they benefit from various social programs aimed at low-income households, another feature of a system that redistributes money.
A new "they". This time "they" are the 40% who do not pay income taxes. any income taxes. 40%. do. not. pay. any. income taxes. Yes, it is another redistribution of wealth with too long a history in the US and another one I wish McCain opposed. But he does not.
Conservatives, citing such statistics, say the country needs no more top-to-bottom shifts of wealth.
I agree. We do not need "more top-to-bottom shifts of wealth." We never "needed" any.McCain, the Republican presidential nominee, has hammered the issue since Obama, talking to an Ohio plumber, said he would raise taxes on the wealthy and cut them for lower-wage workers, adding: "I think when you spread the wealth around, it's good for everybody."
Since lower wage workers do not actually pay income taxes, one cannot cut their taxes no matter how much one raises the taxes of the wealthy.
Oh. and spreading the wealth around does not do anything good for anybody, but if The One would like to provide evidence for his assertion that it is good, I think we would all be eager to listen. even the Obamedia, which, like this author, has suspended disbelief for the duration of the election.
Many Americans think that sounds "a lot like socialism," McCain said in a radio address Saturday. "Barack Obama's tax plan would convert the IRS into a giant welfare agency," he said, "redistributing massive amounts of wealth at the direction of politicians in Washington."
And right he is. BO's tax plan will have the IRS send checks to people who did not pay any income taxes. They will not be receiving a rebate of taxes paid nor will they be getting a pre-bate on taxes they would be expected to pay next April. No. The IRS will send them a check because they do not earn enough money, just as the old Welfare agencies send out checks to those who do not earn enough money. This is in addition to the Earned Income Tax Credit which a large chunk of this "they" has been getting for years. McCain is wrong. It was the Earned Income Tax Credit which turned the IRS into a Welfare Agency. This new set of checks just continue a too long tradition.
McCain accused Obama of "class warfare." But McCain is the perpetrator, argue Democrats, who contend he is trying to fuel middle-class resentment toward poorer people with inflammatory words like "socialism" and phrases reminiscent of Ronald Reagan's attacks on "welfare queens."
Democrats are, as usual, engaging in class warfare. The "rich" are not paying their fair share. BO will cut taxes on all but the highest 5% is a blatant " punish the rich" ploy. He knows 40% of Americans do not pay income taxes so obviously they are not paying too much, and he knows the top 5% already pay more than half, yet he says they are not paying enough! "Fatcat bankers" wasn't enough of a clue? "Greed" caused the credit crisis? 823* different proposed bennies for the middle and lower classes to be paid for by raising taxes on the top 5% is not class warfare? Get your gov't bennies here! But we can only give you something for nothing if you agree we should punish those way richer than you. It is their fault you are not rich like them. That's why they should pay even more and you should get a "taxcut" on taxes you did not pay and all these other gifts from the gov't!
What phrases reminiscent of RR's "welfare queens"? I have not heard any. Have you? The author does not provide any evidence so I am going with " none". "Socialism" is an inflammatory word here, because most Americans are viscerally opposed to the gov't determining the winners and losers in the economy. However, most Americans think upperclass white kids or Europe when they hear "socialist"and McCain is not talking about changing welfare or any programs for "poorer people". He is merely talking about not increasing taxes on the 5% of taxpayers already paying more than half of all income taxes.
In fact, Obama supporters note, the gap between rich and poor Americans has grown markedly in recent years as middle-class wages remained largely stagnant while corporate profits and high-earners' salaries soared. The nation's income inequality now ranks among the world's largest, reports show. The richest 10 percent earn an average of $93,000 a year; the poorest 10 percent make $5,800 on average."
I gotta ask, since obviously the US does not have the World's Greatest Income Inequality, which nations rank above us?
I am disappointed to hear that a small, auto repair shop owner is among the top 10% of income. Remind me to lord it over y'all. That the poorest 10% make only $2.90 per hour ( because I assumed they worked 40 hours a week, 50 weeks a year like most taxpayers) really surprises me. Not because I manage to do that working sporadically, but all these years and such a long tradition of spreading the wealth and yet the Minimum Wage bill never got passed?
Various economic and regulatory factors have fed that gap.
Gee. I wonder what they might be and why they were not delineated?
But tax policies play a role, too, because some major revenue sources are far less favorable to low-income people than the income tax is.
For most Americans, the biggest tax burden is the payroll tax that funds Social Security and Medicare. The tax rates are the same for everyone, and the Social Security levy does not apply to incomes above $102,000, a boon to the wealthy.
A "boon to the wealthy"? SS is supposed to be a supplement to one's savings/investments/other retirement plans to keep hunger away. Granted, too many Americans think it replaces savings/investments/ other retirement plans, but even the Nanny State cannot force people to believe what they do not wish to believe. SS is a great ponzi scheme but that is irrelevant to this article. SS payments are supposed to be investments. Because it is part of the long tradition of redistribution, one becomes fully vested after a very short period of time and ones benefits are determined bythe whims of politicians not earnings, costs, risks, or anything else quantifiable. My husband, the aforesaid owner of a small auto repair shop, not quite 48 years old, has paid into SS and Medicare $200,000.00. If he retires at 65, after which he will likely have paid in another $200,000.00, he would have to live another 20 years at $20,000 per year to make up what he paid in- forget the interest he could have earned on that money or the investments he could have made, or the businesses he could have started, or the down payment on a house he could have given his children. OTOH, those like myself, who have rarely earned above minimum wage and did not work continuously,will, if we live to retirement, take in way more than we paid in. People like my husband have paid for us, so the argument that SS taxes are regressive is untrue. Those low income worker will get more for every dollar they paid in than the high income worker will.
Moreover, Social Security benefits go to rich and poor retirees alike. That means low-income workers' payroll taxes are partly shifted to wealthier people, a reverse of the income tax's topdown construct."
see above.
Federal excise taxes on products including gasoline and cigarettes are more regressive still, as are sales taxes levied by many states.
Fed excise taxes on cigarettes are not regressive as they are purely optional. I choose to smoke, therefore I choose to pay. Fed taxes on gas - and state taxes- are regressive in the sense that they are a greater cost to lower income people, but they are exquisitely fair in that they tax how how much each person uses of a finite resource. Sales tax can be regressive, but usually is not as essentials are usually taxed at a lower rate than non-essentials. The more well to-do spend more and pay more tax. The Yacht tax in the 90's was not aimed at the poor. OTOH it hurt the working stiff because fewer yachts were purchased, so fewer workers were needed, so many workers were laid off. Predictable - and predicted- consequences of trying to punish the rich, aka class warfare.
Despite the nation's income disparity, McCain sees Obama's exchange with "Joe the Plumber" as a means to appeal to anyone who resents paying taxes to subsidize less wealthy people. His running mate, Alaska Gov. Sarah Palin, criticized "Barack the wealth-spreader" in a campaign speech Tuesday in Reno, Nev.
Obama responded while campaigning in Florida. He said McCain, like President Bush, wants to "give more and more to those with the most, and hope prosperity trickles down to everyone else." He said McCain has accused him of being "more concerned with who gets your piece of the pie than with growing the pie."
After eight years of "Bush-McCain economics," Obama said, "the pie is now shrinking."
Forget that Bush and McCain do not actually have the same policy. Neither Bush nor McCain are trickle down supporters. Neither has ever proposed "giving" anything to those with the most ( they have proposed allowing those who earned the most to keep a bit more of what they earned) Obama's stated plans will not grow the pie. they will shrink it. His plans would shrink it even in good economic times. McCain's tax plans will help to grow the pie. ( Not anywhere near as much as my plans, but that is not the question tonight)
Obama has proposed higher taxes on the wealthy, and tax cuts for most other households. He would end the Bush administration's tax cuts for people making more than $250,000 a year, he says. He also would impose a new Social Security payroll tax on incomes above $250,000 a year.
( ie. good bye any idea that SS is not Welfare)
Currently, all annual income up to $102,000 is taxed at 12.4 percent for Social Security, with employers and workers splitting the cost evenly.
As for the claim that Obama might turn the Internal Revenue Service into a "giant welfare agency," liberal groups note that the number of Americans on welfare fell by more than 60 percent after a 1996 overhaul of the program approved by President Clinton.
Liberal groups which oppposed that overhaul, as did Clinton ( he vetoed it and the Republicans passed it over his veto, IIRC and as a reporter you should have mentioned all of that since you brought it up) and predicted grave consequences - starvation, more poor people etc, none of which happened. No part of which has anything to do with the IRS becoming yet another Welfare agency. It is the plan to have the IRS send checks out to people who have not paid income taxes because O thinks taxpayers should pay to improve the welfare of non-taxpayers that makes the IRS a "giant welfare agency".
For several years, a strong economy and social safety net programs helped many families avoid poverty. However, the liberal Center for Budget and Policy Priorities says the recent economic downturn "has coincided with a sharp increase in food prices, which has exacerbated hardship for many low-income families who also face high gas prices (and will face high home heating bills this fall and winter)."
duh! Let us all stand in awe of their perspicacity!
The group's chief economist, Chad Stone, says the degree to which U.S. tax policies favor the poor over the wealthy "should not be a concern to people."
Because he thinks US tax policy should favor the poor and punish the wealthy.
"We still have too much poverty," he said.
There is no such thing as the right amount of poverty, so yeah.
And if it were not for the progressive nature of our tax system, it would be much worse."
Evidence for this hypothesis?
"That is why the U.S. system defines rights as it does, strictly as the rights to action. This was the approach that made the U.S. the first truly free country in all world history—and, soon afterwards, as a result, the greatest country in history, the richest and the most powerful. It became the most powerful because its view of rights made it the most moral. It was the country of individualism and personal independence.
Today, however, we are seeing the rise of principled immorality in this country. We are seeing a total abandonment by the intellectuals and the politicians of the moral principles on which the U.S. was founded. We are seeing the complete destruction of the concept of rights. The original American idea has been virtually wiped out, ignored as if it had never existed. The rule now is for politicians to ignore and violate men's actual rights, while arguing about a whole list of rights never dreamed of in this country's founding documents—rights which require no earning, no effort, no action at all on the part of the recipient."
-Leonard Peikoff