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Tax The Rich? Obama’s Plan Gains Steam

Part of former president George W. Bush’s legacy was to create tax cuts for all Americans, regardless of how much money they made. Whether you believe that he made these tax cuts to help the economy or as a favor to his upper-class friends, the economy is still languishing. Now that Obama is in office, he plans to take away the tax cuts for Americans that earn $250,000 per year or more, and his plan has almost come to fruition. Senate Republicans are reluctantly conceding defeat. Is this plan good for the American economy? Why is the president pushing it through? Considering the answers to these questions may be illuminating.

What Obama Believes

If everyone was equal given the same opportunities, it would make sense to divide money equally amongst everyone. Perhaps that is truly what Obama believes. But if we look at any field, at any endeavor, it is easy to see that some people are good at things that others are not. It follows that some people – for whatever reason – are better at making money than others. If we divided money equally amongst everyone, those best at making money would soon have more than their share. Spreading the wealth would merely delay this process. In our society, many of those with incomes above $250,000 per year are those who are good at making money. Taxing them would not only be a waste of time, but it would slow down that rate at which these people start businesses and grow their existing businesses. Ironically, this would hurt those who Obama wants to help – the lower and middle class workers who might gain employment through these businesses. The alternative view would be that Obama is trying to win the votes of poorer Americans. Either way, these very Americans lose with Obama’s tax plan.

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