The latest proof that President Obama is a freebooting Marxist.
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And increasing benefits for not working only pays people more for not working and not contributing to the economy. All of this will only get worse in Obama’s unearned second term. The long-term result will be economic stagnation, not rapidly increasing living standards, as in all the countries that Obama admires and wants America to follow.
The American people used to know all of this, which is why they never voted for redistribution over economic growth in the past, whenever they were given a well-articulated choice.
The Mentally Feeble Left
The Left’s big counterargument to these demonstrated facts is that they only cover the federal income tax. They don’t count the Social Security and Medicare payroll tax, which all working people pay of at all income levels, and which the rich do not pay on all of their income, like most workers.
But it is the federal income tax that President Obama has been arguing should be increased because the rich don’t pay their fair share, not payroll taxes. So it is reasonable and relevant to look at what share of federal income taxes “the rich” are already paying.
Moreover, the Left is again grievously in error in thinking the maximum taxable income for the Social Security payroll tax of $113,700 is a loophole for the rich. Social Security benefits are calculated based on the worker’s income history. Only the income on which the worker paid taxes is counted.
So the limit is not an unfair loophole. Workers don’t pay taxes on income above the limit, but they don’t get benefits for that income either. That is because Social Security is a contributory program that only replaces a floor of wage income in retirement. Once your retirement income is above that floor, there is no good reason to force taxpayers to pay more for higher benefits. That is especially because Social Security pays such poor, below market returns on tax payments into the program, actually negative real returns for higher income workers. So why force a worker to pay more for a negative real rate of return. It doesn’t help to close the long run Social Security deficit, because more benefits would be owed in the future in return.
But let’s humor the little communists, and look at the relative shares paid for all federal taxes. Again according to official IRS data, in 2009 the top 1% paid over 22% of all federal taxes, while earning 13% of the income. That is down under Obama from the nearly 27% of all federal taxes paid by the top 1% achieved by Reaganomics in 2007.
President Obama also continues to promote the illiterate false narrative that the rich pay lower tax rates than the middle class, along with his trained seal sidekick Warren Buffett. But the IRS again reports that in 2009 the top 20% paid nearly 70% of all federal taxes, while earning 50% of the income. The middle 20%, the true middle class, paid 9% of federal taxes, compared to their 15% share of income. The top 1% alone paid well over twice the total federal taxes as the entire middle 20%, while earning less in income. The bottom 20% paid 0.3% of all federal taxes.
America’s Marxist Party
But it is not just Barack Obama. It is the entire Democrat party that has been taken over by Marxists.
Obama represents the heart and soul of the Democrats, whose enthusiasts wear Che Guevara T-shirts sold at their major gatherings. Look at Nancy Pelosi, just as zanily ultraleft as Obama, reelected as Democrat House leader, right after the voters punished House Democrats with a New Deal size 63-seat loss in 2010. Pelosi makes Sarah Palin look like a rocket scientist when she tells us that unemployment insurance benefits are one of the most effective pro-growth policies possible. Why not put everyone on permanent unemployment benefits then? What a tragedy it is then when someone gets a job and gets off unemployment benefits.
The reelection of Pelosi to this post was considered by the Democrats to be fair punishment of the stupid voters who made the grievous mistake in 2010 in voting to restore the Republicans to the House majority. Punishment it was.
Or listen to Minnesota Democrat Congressman Keith Ellison talk about how fair it is for 63% of the income of professional golfer Phil Mickelson to be seized in taxes. Ellison already campaigns in a tricorner pirate hat. Or listen to openly communist Democrat Congressman Alan Grayson from Orlando.
This and more is what your friends and neighbors are contributing to and voting for when they support the Democrat party. They are effectively engaged in a personal assault on you and your family, or at least on your freedom and prosperity, in attempting to turn this most prosperous and successful country in world history into just another banana republic.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
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It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
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