I know I posted about this a few days ago, but I’ve heard so many people wrongly describe Obama as a socialist with no actual knowledge about what socialism is that I felt it important to revisit the issue.
Let’s be clear: The tax policy that Obama proposes is NOT socialism. Socialism is defined as government ownership of the means of production. Obama does not propose this in any way, shape, or form.
But let’s talk about redistributing wealth. Our country has had a progressive tax policy – where the more you make, the more you pay – ever since the New Deal. Reagan was a big proponent of this and furtherd the progressivity of our tax policy. The only truly democratic, non-redistributionist tax policy would be a flat tax policy. And in order to implement such a policy without reducing tax revenues, we would have to double the taxes of most Americans to 30%.
Obama is simply talking about letting the Bush tax cuts expire, which would mean that the highest tax bracket would raise from 36% to 39%. That’s a 3% increase in one tax bracket. And the McCain campaign calls this socialism. It is not. It is merely bringing tax levels back to where they were in the 1990s, the decade in which we saw the largest economic expansion in American history and the bolstering of the middle class. Was our country socialist in the 1990s? No. Obama is not proposing tax levels that have never before been seen.
Finally, Republicans like to wax poetic about how the only way to improve the economy is to lower taxes. Let’s look at the record. We have had the lowest tax levels ever in our country during the last 8 years, and our economy is in the toilet. During the 8 years prior to the Bush tax cuts, taxes were at a slightly higher level, and we saw the largest economic expansion of our time. Raising taxes on the wealthiest 2% of earners does not limit or hinder economic growth. Giving larger tax cuts to the middle class, who spends more than the wealthiest 2%, while making up for that lost income by taking 3% more from the wealthiest Americans spurs growth. Cutting taxes for the wealthiest Americans does not spur the growth of the middle class, which is the backbone of our country.