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I have some Republican friends who were online giving Obama's plans the old "Socialist/Communist" talking points. I wrote this letter and thought I would share it. If anyone has other points or corrections, please write them so I might be able to steal them.

President Elect Obama's Tax Plan returns the taxes on the top 5% (those making over $250,000/yr) to the 1990's level of taxes (40%). For those that still believe this is socialism or to use Obama's words, "to spread the wealth," this rate is far from the 97% during WWII, the 79% in 1936, 67% in 1918.

Continued after the fold.....

These rates do not reflect what the upper class actual pays. I remember the 2004 election when President George W. Bush and Senator John Kerry released their respective IRS forms. Both candidates used loopholes and only paid roughly 11 -14% of their income in taxes. I believe the working classes (which I believe most of us would fall) pays 27%. I know I do not have the itemized deductions to get that rate lower than 25%. So, my percentage as a working class man is higher than the upper classes percentage.

"Spreading the wealth" can involve more than you are probably thinking. In 1980, it took only 4% of a working middle class income to send a teenager to college. Today that percentage has skyrocketed to 25%. How is America to keep the best jobs and innovation if we are not training our youth? We are currently producing 1/10 to 1/15 (maybe more now) the engineers that India or (not and) China produces.

"Spreading the wealth" to the health care industry may not be a bad idea either. To a country who rates lower than Cuba and has an infant mortality rate higher than most third world countries, something needs to change. After all, we are paying four times more for health care than next highest country who has a single payer system.

"Spreading the wealth" means giving someone who has an idea, the ability to earn an income from that idea. If people can't move because of concerns of debt or health care, then innovation will be slowed. When the bottom of income earners increase their standard of living, then Main Street does better. When Main Street does better, Wall Street does better. When Wall Street does better, the upper class does better and produces jobs to gain more wealth.

Following Reagan's original "Trickle down" theory, the upper class does better, but the incentive is not there to produce jobs. The upper class sends that money overseas to hide from the IRS. Trickle down has not worked and will not work.

The Laffer Curve may be a correct model, but when will we have moved far enough left to satisfy people. As the CBO staff explain, Few tax cuts create jobs, and fewer pay for themselves.

Originally posted to Half Republican Better Half Democrat on Tue Nov 04, 2008 at 09:23 PM PST.

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Comment Preferences

  •  There is nothing (3+ / 0-)
    Recommended by:
    Anthony Segredo, carolkay, Snud

    socialist about progressive taxation! People who say such things are certifiable.

    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion" -- Adam Smith, in The Wealth of Nations

  •  David Gergen had a good one the other day (2+ / 0-)
    Recommended by:
    carolkay, Translator

    Link:

    COOPER: It's certainly a question the McCain campaign has kind of been hammering at, portraying Obama as a socialist. You hear that on -- on the Palin campaign as well.

    Is it working?

    GERGEN: They may be making some modest progress with it, Anderson. We did see some evidence of McCain coming up a point or two here and there. I don't think it's anywhere near close enough to win an election. And more importantly, I don't think the Democrats have really answered it appropriately.

    You know, Teddy Roosevelt, a Republican, was very much an advocate of what's called progressive taxation. Ad that is the rich pay more than the poor in terms of taxes.

    Now, one of the most effective popular programs we've had in the last three decades. It's called the earned income tax credit. It's a program whereby, if you're a working person, a working couple and you're below the poverty line, the government will actually give you money. That's a redistributed program. It's a program which takes money from the upper classes and gives it to the lower -- to the working poor.

    Now who started that program? The earned income tax credit? Ronald Reagan. It was one of the -- it was an achievement of the Reagan administration that Bill Clinton then built on.

    So I think that these arguments are -- you know, some of them get so carried away that they don't recognize the realities of what we've been going through in public policy and the big arguments about why the wealth over the last 30 years has been redistributed. It's been redistributed upwards.

    This ain't no party. This ain't no disco. This ain't no foolin' around!

    by Snud on Tue Nov 04, 2008 at 09:31:25 PM PST

  •  If America thinks Obama is a Socialist (0+ / 0-)

    then Socialism has a mandate! (nod to Jon Stewart)

    But, in fact, voters rejected the campaign rhetoric as exactly that.

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