Friday, April 15, 2011

Obama's Class Warfare: A Misconception of Taxing the Rich


Obama has decided to go 150% in on class warfare as his primary tactic for battling the Republican budget.  I say 150% because he has never been below 100% on class warfare.  It is such a mindless tactic appealing to the limited knowledge of the electorate on how the economy grows as well the selfish nature of man.   Let’s just get it out there and say what poor person do you know that is creating jobs and starting businesses?  What impoverished person is investing in new innovation?    What impoverished person would like a job to be able to provide for themselves and their familes.   So now let’s look at the filthy rich, making a mere 250k or more.  This can be a person or a business.   How much more likely is a business going to be to hire a person to pay their own if they have money taken from them from the government?  Logic quite easily says less.  But these are the age old arguments of class warfare.
I would like to look at what I believe is why people are likely to attack the rich even though they know the “rich” are the ones creating jobs.   I have often referenced Scrooge McDuck as the quintessential “rich” person, popularized by swimming through is large vault filled with gold coins.  His house overlooks the small homes of the city, further magnifying his wealth and status.  Scrooge is the exact person people hate, hoarding their money.    In fact, it is not biblical to be a hoarder of wealth.  So Obama’s answer is to tax the “rich”.  What is he taxing exactly?   An income tax is a tax on wealth gained through work.  That means that the money was part of a dynamic economy.   Income is fluid.  A person earns an income because they are part of production and creation.   An graduated income tax, where higher earners pay more money, is a punishment for having been awarded a larger income for what the economy deems as a more significant contribution to the economy.  People that live on existing wealth, the elites, do not feel the pains of a punishing income tax as they are not actually putting forth a contribution toward production.   They are consumers alone, which while valuable, insulates them from the class warfare.  These are often the “rich” people that are such big advocates of income tax increases.  It is their way of trying to keep people from earning their way into their social circle.  You could even say there is discrimination against the new rich, and the income tax code is evidence of that.  If people really want to enact their class warfare, targeting income is the wrong method.  What they should do is propose a tax on stagnant wealth.  Perhaps they should tax any bank account or investment portfolio over 250K.  Isn’t this the wealth they really want.

4 comments:

Kansas Bob said...

Yeah, go after stagnant wealth. Just stay away from workers' 401ks and IRAs. :)

And you know that all the real money is hidden in some Swiss bank account.

And since St Ronald Reagan is held out as THE example of true conservatism maybe we should go back to the tax rates that he enacted?

jrchaard said...

Or we could eliminate the income tax and just do a national sales tax.

Kansas Bob said...

Apparently you are not a "Reagan Conservative" like Obama.

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