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Dick Morris
Dick Morris
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Joe the Plumber Paves Way for Tax Offensive

The most important political contribution of Ronald Reagan to the American political dialogue was his ability to move the issue of taxes from its economic populist cast into a populist, blue-collar issue. But under Bush, the issue switched back to one of class warfare, as an increasing number of Americans paid no taxes at all and the rates on those who did pay them were lowered. Now a chance encounter with Joe the Plumber has afforded the Republicans the chance to use taxes as a blue-collar issue.

The opening Joe provided, as McCain skillfully exploited in the third presidential debate, gives the Republican ticket its first shot at victory since its candidate punted on the bailout bill — the terrible, pork-laden corporate giveaway that Congress passed and Bush signed. Now McCain finally has an issue. Obama's tax plans and spending programs have emerged as the key point of difference between the campaigns. And the Democrat's comment to Joe that he saw his tax policy as a "way to spread the wealth around" underscores the motive behind his program: to redistribute income. Obama might as well have told Joe, "I want to take the hard-earned money you make fixing pipes and give it to other people."

If the Republican Party concentrates its fire on the tax issue and the redistributive impulse behind Obama's plans, it can close the Democratic lead point by point, day by day, until the election. McCain's campaign must resist the temptation to take random shots on a million other issues and zero in on the tax-and-spend issue, emphasizing how taxes penalize those who work hard and live right.

In fact, the rich are paying vastly more in taxes than they ever have. According to the excellent book "Reality Check" by Dennis Keegan and David West, the percentage of income tax revenues paid by the top 1 percent of the population has almost doubled in the past 20 years. Now they pay 40 percent of all income tax revenues. (The bottom half in income pays less than 3 percent.) Despite the lower rates, the rich are paying more and more in taxes because they are earning more and more.

In the past eight years, real, after-inflation income growth for the top 10 percent of the population has been more than 45 percent.

Essentially, the tax debate comes down to economic populism vs. social populism. The Democratic economic populists rail against the rich and demand that they pay more in taxes. The Republican social populists decry the notion of income redistribution as rewarding failure and penalizing hard work. Until Joe, the economic populist polarity dominated the presidential race, to the detriment of the Republicans. But now Joe has brought the social populist argument back to life.

Because there always are, there will doubtless be those who see the social populist approach as a code word for racism, especially because it is directed against the proposals of an African-American candidate. But the dichotomy social populism exploits is one that separates the most productive members of our work force from the others, in the spirit of Joe the Plumber. Race is quite beside the point.

The question is whether McCain has the discipline to pursue the tax issue doggedly for the rest of the campaign. The other targets — from Ayers to ACORN — are so tempting but ultimately appeal to the Republican base and few others. But taxes hit us all.

The core difference between the American working class and its European equivalent is that Europeans are inclined to vote based on their current conditions, while Americans base their decisions more on their goals and objectives for the future. Americans assume upward mobility, while Europeans do not. Both groups are correct in their assessments. Despite the widening gap between the richest 20 percent and the poorest in the United States, the economic chart constantly is churning, and people are continuously moving out of the bottom fifth and upward on the scale, their places on the bottom of the ladder yielding to new arrivals, usually from abroad. So Americans are right to vote their dreams. And Obama's European socialist tendency to sabotage growth in the interest of "fairness" would serve merely to convert an American model that works into a European one that does not.

To find out more about Dick Morris and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com.

COPYRIGHT 2008 DICK MORRIS AND EILEEN MCGANN

DISTRIBUTED BY CREATORS SYNDICATE INC.



Comments

2 Comments | Post Comment

I guess it all depends on what kind of "growth" you are looking for, Morris, doesn't it? Regarding Europe, as McCain would say, "I've gone there." And it looks pretty darn prosperous to me. Instead of the pathetic crumbling bridges and other infrastructure we have here, there are bullet trains, subways that are clean, quiet, and abundant, and cities you can walk around in without anywhere near the stress level about being mugged you have in the U.S. They make competent automobiles, too, and their auto industries are doing well because they don't try to sell the kind of junk GM does. ......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Yep, we make great battle ships and cool military technology (though our imbecile of a president hasn't seemed too interested in using it to protect our soldiers in combat), but we've been falling behind in just about everything else. And we've done a great job of setting an example of how to manage money. I'd say overall it's about time to cast off the superstition and gullibility we've been force fed about pennies trickling down from the wealthy and think about how to manage the operation a little more efficiently. Of course, we're not going to get around to doing that if we can't even get it straight that creationism and "intelligent design" are not science and don't belong in the classroom. You can't build a bullet train by chanting to God.

Comment: #1
Posted by: Masako
Mon Oct 20, 2008 8:41 AM

Sir;... I don't know why I am; but I am so worried about the rich having to pay more taxes.... If the working man worries about paying taxes; well he should be.... It breaks him. He has to make profit. He has to pay taxes, and the fact that he is cut out of part of his income only means he has to work that much harder... What about the loan his employer depends upon??? That only means the worker must be squeezed that hard for profit, working longer, harder, and with few hands on the oars... Labor builds wealth, Labor creates value; but those who end up with the wealth and value should support the privilage. Now, I like to be polite. I don't want to ask anyone to bear more than they can... I would ask for the privilage of paying taxes for which I benefit but little if it was not killing me... I know when the rich ask for no taxes they are including me out... If they don't pay their share, every body has to carry their weight... And they are cool indeed to say the poor don't pay taxes. Well duh! Why don't those poor people devote their lives to the celebration of wealth??? Well, they might if they had any... They are living hand to mouth, and guess who wants to take their hand??? I hope the people are smart enough to see that those making ninty percent of the wealth should pay ninty percent of the taxes.... if it is one percent less they will sooner or later own the whole place....And even if I would volunteer to take them in and support them for life, I wouldn't expect that of my fellows... When people realize that the price of workers paying taxes on wages is poverty there will be an end to it... Let me tell you what is at the root of the problem... To mask the fact that so many are made powerless, useless, helpless and wageless by capitalism, the government subsidizes low wages for meaningless work... This was called the Speenhamland policy in England from the place in Berkshire where the Justices of the Peace first put it into practice... This was a plan of supplimenting wages with relief funds in necessitous cases, but it only seems to have encouraged employers to pay lower and lower wages and to depend on public assistance to keep their laboreres alive... The result was to pauperize many of the agricultural laboreres of Southern England where the policy was followed... -Minimum wages hold income down. Low or no taxes on property held for speculation hold wages down... No taxes on wealth equal to the stress and destruction caused by outlaw capitalism holds wages down... Taxes on wages hold wages down directly and without pity... The working man cannot avoid paying taxes while the rich can. The poor can pay nothing at all...The rich forget that their control of government is because their property was the support of government. They do not want to pay their fair on the train they are running off the tracks... In fact, it is because we pay that we must suffer the train wreck... The wealthy need to pay for their rights since their rights are greater than our own. It is not just good for them, morally virtuous of them, and patriotic of them; but it is good for us and the whole of society for wealth to be pursued and never actually caught because wealth divides the population and makes people on the extremes of society useless...Thanks....Sweeney

Comment: #2
Posted by: James A, Sweeney
Mon Oct 20, 2008 1:31 PM
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