Obama's "Robin Hood" plan: steal from the earners, disincentivize hard work
John Thomas '09
Issue date: 10/22/08 Section: Commentary
Barack Obama is promising many new spending initiatives at a cost of hundreds of billions to be paid for, at least partly, through increased taxes on the rich. At its core, taxation is a method for citizens to collectively pay to meet shared needs that government can accomplish more effectively than individuals. Under this framework, government spending is restrained by how much taxpayers are willing to pay, but this is not how the American system works. According to the nonpartisan Tax Foundation, 33% of federal tax returns had zero tax liability in 2006. The Tax Policy Center, a center-left research organization, estimates that number to be 38%.
At its core, taxation is a method for citizens to collectively pay and to meet shared needs that the government could accomplish more effectively than individuals. Under this framework, government spending is restrained by how much taxpayers are willing to pay. People with federal tax liabilities tend to be more cautious about expanding government than those with zero or negative liabilities since they are the ones paying the bill. If only those who pay taxes decide policy, government spending would likely be reined in and better prioritized.
However, every citizen, regardless of tax liability gets one vote, and this is a recipe for fiscal disaster. Few voters will turn against a politician who promises to send them a check that someone else pays.
There is a famous saying that economists are fond of: "There is no such thing as a free lunch." The basis of this saying is the recognition that benefits from government spending come at a cost.
When the government promises "free" anything, they are unquestionably lying. Democrats, especially, like to describe their health care plans with this word. This is an important insight for the electorate to keep in mind, but its saliency has eroded as the proportion of people with no tax liability has risen.
According to the Congressional Budget Office, a greater proportion of the population has zero or negative tax liability today than at any other time since 1950 and is twice the level in 1967. The Tax Policy Center and The Tax Foundation estimate that Obama will increase the proportion of Americans with no federal tax liability to 48% and 44% respectively. It is much easier to believe a free lunch exists when you don't owe any taxes.
At its core, taxation is a method for citizens to collectively pay and to meet shared needs that the government could accomplish more effectively than individuals. Under this framework, government spending is restrained by how much taxpayers are willing to pay. People with federal tax liabilities tend to be more cautious about expanding government than those with zero or negative liabilities since they are the ones paying the bill. If only those who pay taxes decide policy, government spending would likely be reined in and better prioritized.
However, every citizen, regardless of tax liability gets one vote, and this is a recipe for fiscal disaster. Few voters will turn against a politician who promises to send them a check that someone else pays.
There is a famous saying that economists are fond of: "There is no such thing as a free lunch." The basis of this saying is the recognition that benefits from government spending come at a cost.
When the government promises "free" anything, they are unquestionably lying. Democrats, especially, like to describe their health care plans with this word. This is an important insight for the electorate to keep in mind, but its saliency has eroded as the proportion of people with no tax liability has risen.
According to the Congressional Budget Office, a greater proportion of the population has zero or negative tax liability today than at any other time since 1950 and is twice the level in 1967. The Tax Policy Center and The Tax Foundation estimate that Obama will increase the proportion of Americans with no federal tax liability to 48% and 44% respectively. It is much easier to believe a free lunch exists when you don't owe any taxes.
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datingcops
posted 3/31/10 @ 7:07 AM EST
This sounds like a great program and a great way to improve education in our schools!
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