Obama unveiled his “deficit reduction plan” today

Obama unveiled his proposal for a deficit reduction plan aka jobs plan this morning:  His mantra of “tax the rich” sounded something like this:

“From each according to his ability, to each according to his need”

Economists and financial analysts panned his proposal today, often discounting it as little more than election rhetoric.  Sound bytes designed to pander to his special interest groups.

The troubling factor however is the source of the mentality.

The tax the rich rhetoric “from each according to his ability, to each according to his need” sounds troubling similar to the slogan popularized by Karl Marx summarizing that in a communist society each person should contribute to the best of his ability and consume from society in proportion to his or her needs. 1.

Note this is a Core Obama Philosophy

Note that this is a fundamental political philosophy of President Obama that is rooted in his philosophical beliefs and has nothing to do with fundamental economic facts.

Different than Fundamental Economic Facts

Here is a key “fact” – when the tax rates on the “wealthy” were approximately 70%, they only paid approximately 18% of all taxes.  At the lower 35% tax rate, those wealthy now pay over 40% of all taxes.

So if you want to “tax the rich” – the true effect is to shift the tax burden to everyone else.  Obama understands this but doesn’t care; it’s not economic to him, it’s a philosophical core belief that each should pay according to his ability and consume according to his need.

 

Filed under: Ethics

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