Wednesday, April 20, 2011




President Obama has taken up again the worn-out cudgel of class warfare. In class warfare the Left suppresses truth, ignores indisputable facts and clothes greed in euphemisms of “tax fairness and social justice.”

It matters nothing to the Leftist that almost 50% of the American population may live on welfare and pay little or nothing in taxes. Neither does it matter that the government imposes a far greater tax burden on Americans successful in small business and other enterprises critical to American economic prosperity. It is simply and indisputably a fact that,

… a big portion of the federal income tax burden is shouldered by a small group of the very richest Americans. The wealthiest 1 percent of the population earns 19 per­cent of the income but pay 37 percent of the income tax. The top 10 percent pay 68 percent of the tab. Meanwhile, the bottom 50 percent—those below the median income level—now earn 13 percent of the income but pay just 3 percent of the taxes. These are proportions of the income tax alone and don’t include payroll taxes for Social Security and Medicare. [1]

We hear the Leftist rabble rouse for “Tax Fairness.” Their demands, however, have nothing whatever to do with tax fairness. The Leftist hungers for the powers of political patronage that rise with the state’s expanding confiscation and redistribution of private wealth. Tax Fairness and Social Justice are the inventions of that same government that coins such bureaucratic nonsense as “Overseas Contingency Operations” and “Work Place Violence” (to describe the mass murder at Ft. Hood by an American Islamic Terrorist, words the Left have stricken from their vocabulary).

The Constitution is founded on the principle of private property: The citizen, and not the state, owns the property he creates or earns. It is for him and not the state or hungry leftist factions to decide what percentage of his property should “in fairness” be taken. When that decision is made by an electorate vested in the welfare state or by government apparatchiks addicted to the powers of political patronage, then constitutional government becomes a farce.

President Obama is now asking the billionaires and the millionaires to pay “just a little bit more.” However, the president is not asking for just a little bit more. He is demanding the confiscation of 1.6 trillion dollars in new taxes. He implies that massive new taxes will somehow repair the damage he has done to his country by the creation of a 14 trillion dollar deficit. In fact, however,

There is no correlation between tax rates and deficits in recent U.S. history. The spike in the federal deficit in the 1980s was caused by massive spending increases. The Congressional Budget Office reports that, since the 2003 tax cuts, federal revenues have grown by $745 billion—the largest real increase in history over such a short time period. Individual and corporate income tax receipts have jumped by 30 percent in the two years since the tax cuts.[2]

Now, an administration that has taxed Americans more than all other presidencies combined, informs Americans that the culprit, is neither the Leftist nor the Obama Administration, but a Bush 2003 tax cut. The Bush tax cut, however, indisputably increased federal revenues by $750 billion dollars. However, the government as it squandered the billions created by the Bush tax cut also surreptitiously increased taxes by borrowing and squandering vast sums of money from China. When the citizen hears the word “deficit” he should recall that the word “deficit” and “taxes” are synonyms; for that is precisely what deficit spending is—the imposition on all Americans of staggering additional taxes, over and above the taxes Americans must pay every year.

President Obama, however, identifies as culprits the squalid millionaire and billionaire, former President Bush, the tax cuts, the Tea Party and Congressman Ryan whose budget reforms, President Obama argues groundlessly would ruin the poor, the middle class and heartlessly destroy Medicare. Dick Morris in his April 20, 2011 column describes President Obama as a hypocrite. He writes,

Piously posturing as the savior of Medicare, President Obama lashed out at the House Republicans for embracing the budget proposed by Budget Committee Chairman Paul Ryan (R-Wis.). But a comparison of the president's own plans for Medicare with those in the Ryan budget shows that the Democratic cuts are far more immediate and drastic than anything in the GOP proposal. while the Republican Medicare changes only take effect in 2021, Obama's cuts will begin hurting seniors right away.

In fact the President intends to cut additional billions from the Medicare budget by the imposition of spending caps.

Obama's cuts, which will take effect immediately, are to be administered by his newly created Independent Payment Advisory Board (IPAB) of 15 members appointed by the president. Its recommendations for cuts in Medicare services or for reductions in reimbursement will not be subject to congressional approval but will take effect by administrative fiat. Right now.

The IPAB will be, essentially, the rationing board that will decide who gets what care. Its decisions will be guided by a particularly vicious concept of Quality Adjusted Life Years (QUALYS). If you have enough QUALYS ahead of you, you'll be approved for a hip replacement or a heart transplant. If not, you're out of luck. Perforce, many of these cuts will fall on those at the end of their lives, reducing their options to accommodate Obama's mandate to cut costs. If death comes sooner, well, that's the price of aging in Obama's America.

Shortly after President Obama’s campaign speech Standard & Poor announced it was downgrading the outlook for the United States Treasury bonds to negative. The stock market immediately plummeted well over 200 points. Standard and Poor, like the American nation itself, lacks confidence in this administration to do other than incur debt and recycle the late President Lyndon Johnson’s Great Society prose and poetry.

Frederick Hayek in his tour de force The Road to Serfdom wrote that socialism in its modern incarnation as the welfare state leads inexorably to the ascendance of an academic and bureaucratic elite who rule the many serfs bound to work, to maintain them in wealth, privilege, power and prestige. It is a book well worth the reading.

By the way, President Obama earned 1.7 million this year and received a $12,000 refund, this down a bit from the five million he earned the previous year.

Still, nice work if you can get it.

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