Obama's (not Bush's) tax plan

Adam Lerrick, an AEI scholar, points out disturbing statistics. If you add together 1) the 40 percent of voters who pay no taxes now, 2) the 9 percent who will join the no-tax rolls after receiving Obama's refundable tax credits, and 3) the 11 percent who pay negligible taxes (less than 5 percent of their income, or less than $1,000annually), you get 60 percent. That means the new extraordinary spending for health, education and energy independence would be free for 60 percent, or a substantial majority of the voters. Their incentives will clearly be to support social programs they don't have to pay for. What will be the effect on the output of the 40 percent who will be paying the entire bill? Are you willing to bet nothing?

But not to worry. This situation cannot last. Obama's spending for health and education are sure to become permanent entitlements that, according to Lerrick, will eventually spread the tax burden: "... the higher tax brackets will kick in at lower levels down the ladder, all the way to households with a $75,000 income." Maybe that will cause people to vote in someone who understands what capitalism is all about!

Tea parties and capitalism

Eugene Robinson, on the Op-Ed page of the Washington Post for Friday, April 17 discusses the issues behind the recent tea parties. His seven candidates: taxes, spending, gun control, immigration, abortion, gay marriage and bank bail-outs. He missed the single most important issue for our time, and one that was prominent on the tea party posters: replacement of capitalism by governmental control. It represents nothing less than the erosion of the single institution that has created the enormous wealth and non-centralized decision making of this country.