Barack Obama’s Tax Plan Socialist? Nope.
It seems as though when John McCain isn’t discussing what Joe “The Plumber” Wurzelbacher discussed with him during their morning conference call, he is calling Obama a socialist. Now, trying my hardest to spare you a lecture on the tenets of modern day socialism, I am going to explain why Barack Obama’s tax plan isn’t socialist, and why technically this nation isn’t capitalist.
First of all. Barack Obama’s tax plan isn’t socialist at all. In fact, when either Sen. Obama or Sen. McCain refer to is as a “distribution of wealth” or “spreadin’ the wealth around” thats just a dramatic over simplification, and in some respects even a misconception. Barack Obama is basically eliminating the Bush Tax Cuts, and raising the higher tax brackets to the same levels set during the Clinton Administration, which is remembered for it’s economic success (see a great stat sheet here in PDF form).
Barack Obama’s tax plan though more progressive, is no where near as Socialist as the GOP or John McCain make it sound. If you think a progressive, fair share tax plan is Socialism, then we have been a socialist nation for 100 years now. What Barack Obama’s plan is doing is basically closing these unfair loopholes that higher tax brackets take advantage of in order to pay the least amount possible. If you and I are paying our fair share, so should everyone else, right?
This idea of Socialism and “redistribution of wealth” is like a horse with blinders on, focused on one purpose but ignoring the facts around it. Every time the Government builds a road, makes a social security or welfare payment, or pays for an elderly persons medical care, that by definition IS a redistribution of wealth. People argue that the bailout bill is the “downfall of capitalism in America.” But are we all that capitalistic?
In reality the government involves itself in the economy all the time. The Pentagon procurements that keep defense contractors operating, creating defense technology and weapons is an example of government intervention in the military economy. The FDA is an example of government intervention in business, as it is the gateway for foods and medicines to the open market. No approval, no sale. Pre-college education, AMTRAK, and the USPS are all provided and controlled by the government. And our Bailout plan doesn’t really scream laissez faire either. In reality, we are a mixed economy, and I don’t think this has crept up on us out of no where.
Barack Obama’s tax plan & healthcare system may be progressive, but it is far from a radical shift to socialism. As I am flipping through the pages, I really don’t see any ideal that isn’t already in place. I don’t see Barack Obama’s plan to buy up the means of production, set production quotas, or abolish private property and capital. He is not buying up factories and forming “The Bureau of Wages” either. Have a great Friday.
Nice Site layout for your blog. I am looking forward to reading more from you.
Tom Humes
Tom Humes
October 24, 2008 at 1:01 am
Thanks Tom!
jlv0628
October 24, 2008 at 7:38 am
[...] and a COMMUNIST. Hmm, doesn’t seem like what’s going on here at all. Refer to my past post on Barack Obama and Socialism for a little more info. And lets try to keep [...]
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October 28, 2008 at 2:37 pm
As I read this article, deciding on the fate of our country in general. You have made several key points that goes overlooked everyday. Our economy is made up of different factors that is governed by businesses and people, yet most Americans do not seem to understand this. With the tax proposal coming under fire, I would have to agree that Distributing wealth is not a new idea but that has been a spin for Mccain and has failed to achieve its effect, considering the majority of United States is Working Class citizens that could use a break from the Tyranny of the rich. The breakdown of the article is well written that explains to the low man on the pole. I think everyone should have a gander at this.
Write on.
Wolffe
October 29, 2008 at 10:01 am
Wolffe,
Thanks for the comment and the kind words. I am glad you enjoyed my post.
I wrote this for that very reason. I think people who call Barack Obama a socialist don’t have a full grasp on what socialism actually is. The GOP uses this as yet another scare tactic in their vast arsenal.
People constantly tell me “Wait till you get rich, and you can’t be because Barack Obama will redistribute your wealth”. The Obama tax plan is just a reinstitution of the Clinton tax plan. Raising the tax bracket on the rich 3% is full on Socialism? I think if America cracked open Socialism for Dummies they’ll be rather surprised to see that it’s not.
jlv0628
October 29, 2008 at 10:26 am
All you have done is define Socialism differently. The basic concept of taking the hard work of others and distributing it to those who haven’t worked for it is socialist.
“Fair share tax plan” IS socialist. People work harder than others in order to have more, not to give more away to those not willing to work for it.
Jack Hancock
November 5, 2008 at 5:53 pm
Jack,
I don’t seem to notice in any way how I have defined Socialism differently. Socialism is a muted aspect of this nation’s economic system, and it seems to me that you don’t see that.
This tax plan Barack Obama is planning to implement is no where near as socialist as the GOP makes it sound. This nations tax system has been based on being taxed according to what you make for close to a hundred years now. But suddenly, it becomes an issue NOW. These rates are similar to the Clinton tax plan and I don’t remember hearing anyone complain then?
I hate this notion in America that taxes are a negative thing. If it weren’t for these taxes we wouldn’t have a lot of vital things, like police/fire, and roads.
You have a better, “more fair” solution, by all means lets hear it.
jlv0628
November 5, 2008 at 9:23 pm
To jlv0628:
Yes I have a “more fair” solution. Tax everyone in the country the same. Using the buzz word of this topic, a “progressive” tax system like the one we currently have punishes the sucessful people who have gone out, worked hard, and made something of themselves. I currently hold a Ph.D. in a hard science and have an excellent salary. I have just started working on an MBA which, when completed, should land me a job that will put me over B.O.’s rich threshold. Why should I be punished for my sucess???
38% of Americans don’t pay income tax, is this fair? You are OK with this? Maybe we should all sit on our butts with our hand out saying “Gimme.”
Ed
November 18, 2008 at 9:11 am
Thanks for the comment Ed. I want you to know that I do agree with you more than you think, being a person who is going to start graduate level education as well.
Is this tax system a wasteful, unorganized, overly complicated mess? Absolutely. Does it need reform? You bet. What I am trying to communicate in my post is that Obama’s tax plan isn’t full on socialism as Sarah Palin (who BTW, runs the most socialist state in the union) or anyone from the GOP would lead you to believe. I would love a solution to the tax problem that would keep everyone happy and be fair. But I don’t think a flat tax solution is it.
Sure, it would uncomplicate the tax system very quickly. But what would be a fair percentage to charge? Who’s to say that what’s fair for you and I is going to be fair for someone else? There would be a lot of debating going on to settle on that magic number.
Also, a flat tax would severly reduce the amount of income the government takes in, considering that right now 80% of the governments income comes from the income tax. This is backed not only by the Treasury Dept. but also by the main economists that support the flat tax. The government could impose other types of taxes, like a massive sales tax to compensate. All that would do is hurt business for everyone.
Secondly, I believe the flat tax would favor the wealthier more than anyone else. The lower and middle class spend more of there income proportionately on living expenses and neccesities than the rich, because the rich make more, spend less proportionately, hence have more discretionary income. A person making $10 million per year would feel it less than a person who makes $40,000 and has a family.
I don’t think we should be punished for our hard work and success, and that is definitely not what I am saying. I just don’t think the lower and middle classes should suffer a high flat tax either, especially when most are trying to make ends meet as is.
jlv0628
November 18, 2008 at 12:41 pm
lets forget about obama… ok social security and medicare and all that.. yea that is socialism or redistribution of wealth. but there are people who don’t like it. the system is going to fail. the people didn’t like the bailouts, and they rejected it… even though congress did not. there is more of an antisocialist sentiment than you think. building roads has been universally accepted socialism for a long time. same with police etc. it’s the words he used that stirs everyone up. we are capitalist. we are somewhat socialist. but we are not europe
ender
January 19, 2009 at 6:30 am
hahahah fuckin, liberal pussy. obama is a socialist
cock wilson
April 9, 2009 at 2:56 pm