Friday, January 29, 2010

Rightardia editorial: Got Balls?

This is no time to be timid or plodding. Either the rubber hits the road or the Democrats are going to lose the 2010 elections. This will mean grid lock and also that the US recovery will be slowed.

The Republicans love to talk a big game about limited government and tax cuts. Neither will hasten the recovery of the economy. Obama has already cut taxes for the middle class and and has not raised taxes on the most affluent Americans who received huge tax cuts during the Bush administration.

When Reagan and Bush were president, the GOP spent like drunken sailors on defense and left the nation in the red. The Democratic governments of Jimmy Carter and Bill Clinton did a far better job of balancing the budget.

Limited government is a GOP exaggeration. When conservatives take power, they spend more money and have different priorities. When George W. Bush was in office, he created the largest federal organisation is our history: Homeland Security.

Republicans also look the other way in the Department of Labor, Education, Justice, Energy, Veterans Affairs and the Interior when they are in power.

If Obama is aware of the lessons of the Great Depression, he would know that the affluent paid for the war and the economic recovery with a 90 per cent income tax rate.

Since World War 2, the GOP and conservative Democrats have cut the tax rate for the affluent to 35 per cent, a whopping 61 per cent drop. To make matters worse, capital gains tax is only 15 per cent.

Most wealthy americans make most of their money with holdings in stocks and bonds that are subject only to capital gains taxes. Many of these people don't work at all and simply live off fortunes that they inherited from parents or other close relatives. This is the GOP welfare state for rich white people. .

The GOP would like you to believe that Income Tax is unfair because it is a progressive tax. Actually, the Income Tax and the Estate Tax are the exceptions rather than the rule. Most taxes like municipal taxes, sales taxes and licenses are regressive taxes. The middle class and the poor pay a higher percentage of their incomes for taxes than the affluent do.

Of course, the conservatives will only complain about the progressive taxes. The last effective GOP president was Dwight B. Eisenhower and he left office in 1961.The Republicans have only been out of power for three years. Returning them to power will have a bad effect on the American recovery.

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