We have all been hearing a lot of words being used in the news about taxes, redistributions, socialism, classism, etc. I personally took interest in the concept of redistribution of wealth; and I have been doing quite a considerable amount of research on the tax policies and budget spendings of the past couple of presidents (Clinton and Bush II). I also went into the archives and analyzed statements from the 2000 debates between Gore and Bush to buttress my findings.
Let me delve into my point. On Sept 27 2000, President Clinton announced that the federal budget surplus for fiscal year 2000 amounted to at least $230 billion, making it the largest in U.S. history and topping last year's record surplus of $122.7 billion. (source:http://archives.cnn.com/2000/ALLPOLITICS/stories/09/27/clinton.surplus/)
A couple of weeks later, during the Presidential debates, VP Gore highlighted what I will call the 'redistributionist tendency' in the tax policy of George Bush: The fact that he promised higher percentage of tax cuts to people making the most money and less to those with the least. To be specific, Bush gave tax cuts of only $250 for the 20 percent of households with the lowest incomes, compared with $1,090 for the middle 20 percent of households and $78,460 for the top 1 percent of households. (Source:http://jec.senate.gov/archive/Documents/Reports/CBOtaxcuts13aug2004.pdf).
I call this redistributionist because it is giving more and more to those with the most- even taking poor people's incomes and giving them to the rich-this is evident in the fact that poor people got a lower percentage of tax cuts that richer people.
Fast Forward 8 years. Barack Obama is promising Tax cuts for the middle class. This is done by reversing the exorbitant amounts of tax cuts that Bush gave to the top 5% of the population and increasing tax cuts for struggling middle class working families, which are the lifeblood of the American economy. This is not redistributionist, it is re-redistributionist. It is a reversal of the old greedy tax policy. Some savvy politician once said: If the middle class does well, the economy does well. What about vice versa?
Tuesday, October 28, 2008
Taxes and Wealth Redistribution
Labels:
Barack Obama,
Bush,
Clinton,
Fiscal Policies,
Gore,
John McCain,
Taxes,
Wealth Redistribution
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment