RE-DISTRIBUTE THE WEALTH?
Some people have been getting pretty excited about Barack Obama’s plan to not tax anyone with a yearly income of under $250,000.00. The reason Obama has been espousing this idea, is because he knows that those making less than $250,000.00 comprise the majority of American registered voters and he is hoping that he can get most of them to vote for him. He also knows that it won’t work. At least if he has any sense of history he knows it won’t work. He is hoping that we won’t figure that out until after he is elected, since we will be so excited to think that we won’t have to pay federal income tax any more.
Richard Larsen in his column, where he compared Obama’s plan to Herbert Hoover’s policies did a great job of explaining the problem that most of us recognize as a re-distribute the wealth plan. During my life time there have been several attempts by interestingly enough, Democrats, to re-distribute the wealth either by the promise of no taxes for the poor and middle class, or reduced taxes of the poor and middle class with the major burden of taxes falling on the wealthy.
Most of the time re-distribution of the wealth proposals were defeated because the so called Greatest Generation, that had to live through the Great Depression recognized re-distribute the wealth programs as one of the factors that contributed to the Great Depression and they rejected those programs at the polls. Now, the Greatest Generation has passed away or soon will, since they are now in their late eighties or nineties. Obama and the Democratic Party are hoping that since the majority of registered voters never experienced the Great Depression, but are struggling to make ends meet, re-distribution of the wealth will propel them into the white house. If it does, we will either see Obama concede that he can’t fulfill the promise of no taxes for the poor and middle classes, or if he and a Democrat majority actually pass the legislation, we will be in for the toughest of times.
The re-distribution of the wealth plan relies on the false assumption that the wealthy will pay all or the majority of the Nation’s federal income tax since the percentage of the wealthy’s income that is taxed will increase. The wealthy will be just fine because they make so much that what is left will easily keep them living in the style they have always lived. The poor and middle classes however, will experience more money than they have ever had before because now, they get to keep what they used to pay in taxes.
What I learned in high school and College government classes plus a couple of political science classes I took as electives, and what my father and the rest of the Greatest Generation learned the hard way, is frightening.
Since the wealthy are now burdened with the lions share of the federal income tax, industry will slow down since industry is primarily owned by our wealthiest citizens. As a result of the slow down and down sizing, workers will be laid off to cut expenses. Since industry isn’t producing as much, investing as much or making as much money as before, taxes from the wealthy will not meet the government’s predicted levels. The government will not be generating enough to pay expenses and the National Debt will soar upward. In an effort to meet expenses the government will be forced to re-introduce income taxes for the poor and middle classes. Now the only problem is that the original re-distribute the wealth program has left the poor and middle classes out of work and they can’t pay taxes. However they can now start voting Obama and the rest of the scoundrels that put them into this mess, out of office.
That is exactly what happened to Herbert Hoover after he and his congress passed the legislation.
Whether you are impressed with John McCain or not, (I’m mildly impressed) he has gone on record as saying he will not repeat the mistakes of the Hoover Administration that contributed to the Great Depression, he is supported by a majority of retired military generals and service men and women and has a proven record of promoting bi-partisanship. His worst problem seems to be the same as Barry Goldwater’s was years ago. He has a no nonsense approach to solving problems and talks very bluntly at times. That scares some people.
We can’t spin the bottle again and see if we can do better than Obama or McCain for the next four years so we have to choose one or the other.
I would never try to insinuate that if people are smart, they will vote the way I vote. Could I at least suggest that we all think hard and make what we feel is the best decision for the country. We are all going to be on this ride together for the next four years.
