From the Democrat Playbook: When your Economic Policies Fail, commence Class Warfare

Posted by PITHOCRATES - July 9th, 2011

A Look at Future Obama in 2012

Michael Medved looks into the future.  To what a future State of the Union Address may be like.  For a president suffering low approval ratings.  And an insufferable economy (see My 2012 Obama Nightmare by Michael Medved posted 7/8/2011 on The Daily Beast).

“It’s a national tragedy when 14 million people want to work, and the rest of us see important work that needs to be done, but the big corporations that run our economy won’t match the willing people to the necessary tasks. Big companies have benefited greatly from our economic recovery, and they’re right now sitting on mountains of cash. But they apparently prefer to hoard these resources or, even worse, to use them to build new plants in Asia or Latin America, taking millions of American jobs even further away from the people who need them.

“We’ve waited three long years for bankers and CEOs to step up and do their part but when it comes to offering new jobs to their fellow Americans, these pampered plutocrats  say ‘we can’t’ or ‘we won’t.’ America deserves a better answer than this smug selfishness. The long wait for a corporate turnaround is now officially over. On the crucial challenge of providing a meaningful job to every single American who wants one, we say tonight, ‘we can’ and ‘we will.’”

At this declaration, the Democrats in the House chamber erupted in boisterous cheers, providing further sustained ovations as the president explained his bold plan. He promised to hire 10 million unemployed Americans—a full 10 million!—in federally funded jobs by the end of the year. He proposed to put them to work repairing highways and building high-speed rail, constructing and repairing schools, restoring and expanding parks and recreation facilities, planting trees, tutoring kids, providing day care, caring for the sick and elderly, policing our streets and neighborhoods, putting up new, environmentally responsible power plants, cleaning up pollution, building homes for the homeless, helping update and replace the equipment for our military.

You can actually hear the words from Obama.  Attacking big banks and corporations.  Because he has already attacked them.  And offering a huge job bill to put millions to work.  Because he already has done that, too.  The American Recovery and Reinvestment Act of 2009.  Which promised to do what future Obama is promising.  But didn’t.  So although this is a work of fiction, we have no problem in believing it.  Because we have already lived it.  And could very well live it again.

The president’s plan would tap those concentrations of wealth to fund his vast jobs program with an emergency tax increase on the wealthiest Americans—restoring the 50 percent top marginal rate that Ronald Reagan championed in his initial tax reform of 1981. “My Republican friends love to cite President Reagan’s administration as the golden age of American conservatism. And I propose to follow his great example as a tax reformer. No, I won’t raise taxes on ordinary Americans—and 98 percent of you will pay nothing more. Even the wealthiest Americans won’t see a difference in what they pay on the first $250,000 they earn each year.

“But in tough times, every family needs to reassess its economic priorities. And right now the American family needs to ask, what’s more important—new yachts and island vacations for billionaires, or providing jobs for decent people who need to work?” To underline his point, Obama cited 10 wealthy Americans, seated in the gallery, who came to Washington to express their own eagerness to pay taxes at the higher rate.

Of course, Reagan dropped the top marginal rate from 70% to 50% which was a substantial cut.  In this narrative, which may very well play out in real life, Obama would be raising the rate to 50% from 35%.

In case you’re not sure what this means, let’s look at someone who earns a million dollars a year.  Say a baseball player.  Different ranges of that million are taxed at different rates.  Everything over $372,951 is taxed at the top marginal rate.  That’s $627,049.  At the 35% rate, the player owes $219,467.15 in taxes on that amount.  At the 50% rate, the player owes $313,524.50 in taxes.  Or about $94, 057.35 more.  For a total tax due of $327,888.40.  Which is 32.8% of that million dollars.

Now, if you earn a lot less than a million dollars you, no doubt, don’t care.  You’re not particularly fond of rich people.  Until you become one, that is.  Suppose you win a mega lottery and they pay you one million a year.  How would you feel then?  Being paid one million dollars but only being able to keep $672,111?  Before you start paying your state and local taxes.  Which will probably take another $100,000 or so.  Sure, it’s okay when it’s the rich ballplayer.  But I’m guessing it’ll be different when they’re taking $327,888.40 from you.  To have a federal tax bill every year equaling the cost of a real nice house.  That’s why a lot of people that come into big money have tax problems.  They’re buying those houses.  Instead of giving that money to the IRS.

The above was only a work of fiction.  But should we worry?  Perhaps.

The political fiction offered above should sound alarms for conservatives who seek to extend their progress in 2012. With Obama’s campaign already on a path to raise $1 billion through donations from his diehard loyalists, he isn’t worried about losing Wall Street support. Some of his closest advisers, as well as progressive pundits like former Labor Secretary Robert Reich, have already begun pushing for a radical, vastly ambitious new job program like the one described here.

No, the Democrats will never let the failure of their policies stop them from implementing their policies.  For they are economic deniers.  They know how things should be.  And they learned how in those Ivy League universities.  Some even go on to teach those same failed economic policies in those Ivy League universities .  And sound so smart and erudite when they champion the same failing policies over and over again that people believe that they know best.  When, obviously, they don’t.

Ivy League Economic Deniers

Those on the left use class warfare because their policies typically fail.  And no one really wants what they’re selling.  They want to tax and spend.  And boy do they.  Ronald Reagan had $200 billion deficits.  Obama has $1.5 trillion dollar deficits.  So you can’t deny that they like to spend the money.  And to spend the money you have to have it.  Which means they’re constantly trying to raise taxes.  But that has never proven to be a good campaign message.  “Vote for me so I can raise your taxes.”  Hence the class warfare.  Because once they raise rich people’s taxes, it’s much easier to raise your taxes.  Which they have to.  Because there aren’t enough rich people to tax to pay for their spending.

We need to remember this when future Obama says this when he is present Obama.  Which you know is coming.  Because Democrats are economic deniers.  They look at the worst economy since the Great Depression caused by their policies and say what we need is more of the same.  A lot more.  Not because it has worked before.  But because they learned this in some Ivy League classroom.


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