Negative points for being over-dramatic. A million points for being honest... taxing those who create wealth and then giving that wealth to those who don't create wealth IS "income redistribution".
What's the problem with this? Aside from my moral difficulties of the State taking property that doesn't belong to them, the bottom line is that it creates less incentive to create wealth, because as you create more wealth you're taxed more. An illustration may be helpful here. If I were a small business owner (the chief job creators in our economy) and had the following options, which one would I choose?
Option A: I earn $249,000 and employee 5 workers at $50,000 annual salary. Under current taxation and Obama's plan, I pay a tax rate of 35% (about $87,150 in taxes) and therefore I am really making $161,850. Certainly, not a bad salary. However, we have to remember that the business owner is taking on all the risk of her enterprise here. If the business fails, the employees find other jobs while the business owner is liable for all debts and liabilities. Clearly, this risk justifies the larger share of income that the owner possesses.
Option B: I build a bigger company than in "Option A" and employ 4 more employees at the same $50,000 salary (Overall, these are good things for the economy and middle class workers). As my salary I earn a bit more, $300,000, because hey... I built a bigger company. Under the Obama plan, I would be taxed at 39% (paying taxes of $117,000) thus my real income would be $183,000 ($20,000 dollars more a year for assuming far more risk). Under McCain's plan, the rate would remain at 35% (paying taxes of $105,000) and I would really be earning $195,000 a year ($34,000 more a year for assuming far more risk).
Which plan would a rational business owner choose? Depending on where the margin falls, I think it depends on the tax policy in Option B. Is assuming a greater risk worth an extra $20,000? Probably not. $34,000? Maybe.
Clearly the total effect of taxes depends on where the margin falls. Even so, tax policy makes a difference in deciding whether or not to expand the company. It could make a difference in whether or not 4 middle class employees have a stable, good paying job. Do we really want to risk those four jobs on lofty ideals of equity or on earning a few extra bucks for a Federal government that already brings in $2.047 TRILLION in revenues.
Those 4 middle class employees whose jobs may not exist under the Obama tax plan? They really want their boss to make an extra $14,000. They should be voting for John McCain.
In the end, as McCain said, Barack Obama's tax plan would be the final nail in the coffin for the middle class, and middle class jobs, rather than the salvation he proclaims it to be.
Finally, this isn't touching the issue of Obama's lunatic position on the capital gains tax or his plan to tax energy.
Taxes in general aren't good. Taxes as we near a recession? That's just silly.
The Taxman Cometh:
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