Taxes and the Myth of Fairness
In the Democrat’s ABC debate Senator Obama stated he would raise the Capital Gains Tax even though it would adversely effect the economy because of ‘fairness’. Senator McCain, and Republicans in general, favor keeping this tax rate low because it has been concusively proven that a high Capital Gains Tax slows the economy, and that the government actually takes in more in money when the rate is kept low, as people will invest less if the tax rate is burdensome. Senator Obama’s statement points out the trouble Democrats have with economics. The idea that increasing tax rates on the wealthy, particularly when the economy is sagging, because of fairness shows a lack of economic understanding. An increase in taxes slows economic growth. The people hurt most by a struggling economy are middle to lower middle class people who are already working hard to make ends meet. The wealthy will still be wealthy, but middle class workers will struggle. This is strikingly unfair.
The rationale behind keeping taxes low on the upper class has been explained and marketed poorly. The term ‘trickle down economics’ has a demeaning ring to it. The idea that the rich pay too much, does not engender sympathy. Few have been given a clear explanation about why low taxes stimulate growth. However, one would hope presidential candidates would understand how taxes effect the economy. Senator Mccain has been the only candidate to date to show this understanding. What’s fair for the American people of all classes is to have a president that understands how the economy works, and has an intelligent plan to put the economy back on solid ground.
3 comments April 21st, 2008
