Conservative Colloquium

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Posts Tagged ‘tax cuts’

The Left’s Flirtation with the Middle Class

Posted by Tony Listi on December 27, 2008

Historically, the political Left has hated and despised the middle class, the hated bourgeoisie of Marxist thought. Yet in our times, the Left has realized (or rather re-realized) the political suicide of openly denigrating the “mushy middle.”

The Left has always hated the middle class because it has always represented and been the chief obstacle to its utopia, its unconstrained vision, its establishment of heaven on earth. Going back to at least Aristotle, observant political scholars have recognized the stability that a middle class brings to society. But the Left is not interested in stability, far from it. The Left is interested in revolution, in transformation, in the creation of the New Man; in a word: Change, the very opposite of stability. Moreover, the middle class tends to be less vulnerable to demagogic appeals to irrational class envy or self-hatred. In general, the middle class has also been the guardian of traditional religion and morality from generation to generation.  From every angle, the Left has had every reason to attack the middle class.

However, it has been said that the first rule of politics in democratic or semi-democratic nations is to add and multiply, not subtract and divide. Of course, from a practical, electoral perspective, political leaders, if they are to stand for anything at all, can’t help but divide the public with their rhetoric and policy positions. No, it is not a question of whether a politician will divide the country but how and to what extent he will divide it.

And if the middle class (admittedly a nebulous term) represents a majority, if not a super-majority (as it almost always has in America), then any political movement cannot afford to alienate this class–if it cares anything for practical, electoral success, i.e. power.

Barack Obama, Joe Biden, and the Democratic Party have (re-)learned this lesson well. They campaigned as champions of the middle class, with the unending mantra of promising tax breaks for the lower and middle classes rather than the wealthy (Tax breaks for those who pay relatively little to no taxes?). This stance may work well politically under the current unfavorable economic conditions, just as FDR was successful in pushing his socialist-fascist policy agenda during the Great Depression. But as a matter of economic policy, it is unsustainable and not in the public interest. Conservatives and Republicans must powerfully communicate and demonstrate this truth the the American people.

When the American middle class re-awakens to this harsh reality, it will turn on the leftists, just as it did on Jimmy Carter. After that, it will only be  a matter of time before the Left’s natural hatred of the middle class re-emerges. The Left’s only hope is to weaken, corrupt,  or destroy the middle class before it re-awakens, or to patiently wear it down over time and enjoy the fruits at a later time. We conservatives must work to win over the middle class (or more of it) again. We must illustrate the economic harm that the Left is inflicting upon everyone. We must be in the fight for the long haul as well.

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Posted in American Culture, Budget, Spending, and Taxes, Culture War, Economics, Elections and Campaigns, Government and Politics, Intellectual History, Liberalism, Political Philosophy, Politicians, Written by Me | Tagged: , , , , , , , | 1 Comment »

A Beer Story: Tax Cuts for the Wealthy

Posted by Tony Listi on March 21, 2008

The wealthy pay most of the taxes, so it should be no surprised that they get a larger percentage of the tax cut total back!  It is only fair. 

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Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that’s what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. ‘Since you are all such good customers, he said, ‘I’m going to reduce the cost of your daily beer by $20. Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men – the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’ They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

‘I only got a dollar out of the $20,’declared the sixth man. He pointed to the tenth man,’ but he got $10!’

‘Yeah, that’s right,’ exclaimed the fifth man. ‘I only saved a dollar, too. It’s unfair that he got ten times more than I!’

‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back when I got only two? The wealthy get all the breaks!’

‘Wait a minute,’ yelled the first four men in unison. ‘We didn’t get anything at all. The system exploits the poor!’

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia

Posted in American Culture, Budget, Spending, and Taxes, Economics, Government and Politics, Poverty | Tagged: , , , , , , , , , | 27 Comments »