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Posted by on October 22, 2008, 11:13 am
As the article explains, the inexorable logic of "tax the rich" is to
extend the definition of "rich" to lower and lower incomes.
http://online.wsj.com/article/SB122463231048556587.html
Obama and the Tax Tipping Point
by Adam Lerrick
Wall Street Journal
October 22, 2008
What happens when the voter in the exact middle of the earnings
spectrum receives more in benefits from Washington than he pays in
taxes? Economists Allan Meltzer and Scott Richard posed this question
27 years ago. We may soon enough know the answer.
Barack Obama is offering voters strong incentives to support higher
taxes and bigger government. This could be the magic income-
redistribution formula Democrats have long sought.
Sen. Obama is promising $500 and $1,000 gift-wrapped packets of money
in the form of refundable tax credits. These will shift the tax
demographics to the tipping point where half of all voters will
receive a cash windfall from Washington and an overwhelming majority
will gain from tax hikes and more government spending.
In 2006, the latest year for which we have Census data, 220 million
Americans were eligible to vote and 89 million -- 40% -- paid no
income taxes. According to the Tax Policy Center (a joint venture of
the Brookings Institution and the Urban Institute), this will jump to
49% when Mr. Obama's cash credits remove 18 million more voters from
the tax rolls. What's more, there are an additional 24 million
taxpayers (11% of the electorate) who will pay a minimal amount of
income taxes -- less than 5% of their income and less than $1,000
annually.
In all, three out of every five voters will pay little or nothing in
income taxes under Mr. Obama's plans and gain when taxes rise on the
40% that already pays 95% of income tax revenues.
The plunder that the Democrats plan to extract from the "very rich" --
the 5% that earn more than $250,000 and who already pay 60% of the
federal income tax bill -- will never stretch to cover the expansive
programs Mr. Obama promises.
What next? A core group of Obama enthusiasts -- those educated
professionals who applaud the "fairness" of their candidate's tax
plans -- will soon see their $100,000-$150,000 incomes targeted. As
entitlements expand and a self-interested majority votes, the higher
tax brackets will kick in at lower levels down the ladder, all the way
to households with a $75,000 income.
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Posted by Ron Peterson on October 22, 2008, 11:28 am
On Oct 22, 10:13 am, beliav...@aol.com wrote:
> As the article explains, the inexorable logic of "tax the rich" is to
> extend the definition of "rich" to lower and lower incomes.
So, what is your point?
--
Ron
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Posted by Gil Faver on October 22, 2008, 11:55 am
> On Oct 22, 10:13 am, beliav...@aol.com wrote:
>> As the article explains, the inexorable logic of "tax the rich" is to
>> extend the definition of "rich" to lower and lower incomes.
>
> So, what is your point?
I think he made his point rather clear.
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Posted by Igor Chudov on October 23, 2008, 2:16 pm
> Beware the government man bearing gifts. Hugo Chavez of Venezuela
> promised the poor refrigerators and houses. One such Chavez voter, an
> elderly woman living in one of the shanty-towns that still surround
> the capital city (as they have since the 1940's), said
> (approximately), "No, I don't have my refrigerator yet, and I still
> live on a dirt floor, but I still have faith! I am still going to wait
> for my refrigerator!" In the meantime, the currency has collapsed,
> people are shooting each other for cars, and neighborhoods are self-
> policed with barbed-wire barricades.
I am not quite sure where you get your facts (maybe Fox News?)
Venezuelan bolivar's exchange rate to dollar has been relatively
stable, certainly not collapsing:
http://finance.yahoo.com/currency/convert?from=USD&to=VEB&amt=1&t=5y
https://www.cia.gov/library/publications/the-world-factbook/geos/ve.html#Econ
- 37% below poverty line
http://www.nationsencyclopedia.com/Americas/Venezuela-INCOME.html
It was estimated that in 1997 about 67% of the population had incomes
below the poverty line.
Probably, a large role in their relative prosperity is oil prices,
but badmouthing Venezuela would be better done with actual facts.
--
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posting on Usenet.
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Posted by dapperdobbs on October 23, 2008, 4:25 pm
>
> I am not quite sure where you get your facts (maybe Fox News?)
>
> Probably, a large role in their relative prosperity is oil prices,
> but badmouthing Venezuela would be better done with actual facts.
>
I lived there and keep contacts with friends.
The populist movement began in the late 1970's with Carlos Andres
Perez' call to nationalize oil, and stop the Americans from stealing
Venezuela's non-renewable natural resources, "the nation's legacy to
our children". Prior to that nationalization, the Bolivar (pronounced
Boe-lee-var, with accent on 'lee'), was Bs.4.5 to the dollar. A true
middle class was forming at that time, with condos and rental high-
rises being built for young Venezuelans (not just for the wealthy
foreigners and rich nationals).
Following the nationalization, productivity took a nose-dive (05% of
the economy was oil). Industry supported by oil scaled back as well.
American's and their work-ethic management know-how exited. The
emergence of the middle class was snipped off at the bud, and the
Bolivar began its long slide to the current what? Bs. 700 to the $US?
The price of a cup of coffee went from Bs.0.50 to Bs.1,500 - and the
price of rice, milk, and beans followed. Chavez was merely the latest,
living conditions have deteriorated the most under his reign, and he
is still attempting to conolidate the death-grip on the economy and
the people.
Be careful who you decide to make fun of. That I know of, no one here
posts irresponsibly without some firm knowledge to back up their
opinions.
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