Tag Archives: tax breaks

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'Transfer of wealth' talk likely to surface

Can we now discuss one of President Obama’s key points in his State of the Union speech?

It’s about that tax cut for the middle class.

He took considerable pain Tuesday night to extol the virtues of middle-class Americans and the work they do to make our country strong economically. He wants to give middle classers — folks like my wife and me — a break on their taxes. To pay for it he wants to ask more of wealthy Americans. They need to pay more in taxes to finance the tax relief he’s planning for the rest of us.

http://www.msn.com/en-us/news/politics/republicans-have-one-word-for-president%e2%80%99s-proposals-and-veto-threats-%e2%80%98no%e2%80%99/ar-AA8pnAq

Those on the right and far right have a term for it. We’ll hear it. It’s called “transfer of wealth.”

Let’s try to set the record straight.

As I understand the meaning of the term “transfer of wealth,” what would have to occur is that the federal government would have to actually take money earned by rich folks and give it to not-so-rich folks. Legend has it that Robin Hood did that in medieval England when he “took from the rich and gave to the poor.”

That’s wealth transfer.

What I heard the president propose Tuesday night was nothing of the kind.

A tax cut for the middle class wouldn’t deprive rich Americans of their wealth. They’d still be rich. They’ll get to keep their yachts, fancy cars, summer/winter homes and all their bling.

The middle class would get to pocket a little more disposable income to spend on things they want or need.

All this being said, I do understand GOP criticism of the president for proposing something he knows won’t ever be enacted into legislation he can sign into law. On that score, Barack Obama has proved his political deftness, as his proposal was met in the congressional chamber with applause from Democrats and silence from Republicans. How do you suppose that looks to millions of middle-class Americans watching who actually favor a tax break?

I don’t intend to tolerate any demagoguery about wealth transfer in describing what the president has pitched.

How about debating the proposal on its merits: Do the folks who control Congress favor a tax break for middle-class Americans or not?

 

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Obama lays out his vision; GOP won't like it

2 Comments

 

This will surprise no one, I’m sure. I liked President Obama’s State of the Union speech.

The only problem with the speech, though, is that while he spoke of working with Republicans who control Congress and while he expressed a desire to find common ground, he staked out one key position that is sure to rankle the loyal opposition.

The president wants tax breaks for the middle class and wants to tax the wealthy more to pay for them.

Given that I am not rich and that ours is a middle-class household, how in the world can I not like what the president said tonight?

I won’t critique Obama’s speech point by point, but I’ll note that he threw down the gauntlet to Republicans. He’s feeling heady these days. His poll numbers are up. The economy is gaining enormous strength. He spoke on behalf of middle-class Americans and forced the Republicans to sit on their hands on national TV while their Democratic “friends” stood and cheered.

It’s the optics, man. They look good for one side of the aisle — and it’s not the Republican side.

It is difficult to imagine how Republicans are going handle their differences with the president. They don’t want to tax the wealthy any more. However, where else can Congress find the money to pay for those middle-class tax breaks?

Free community college for those who qualify? The response to that idea also split the chamber and likely split the parties.

The president’s tone was conciliatory — at times. The underlying theme throughout, though, suggests that talk of bipartisanship won’t bring the other side along.

I’d be standing and cheering if I had been in the room tonight. I’ll presume you knew that already.

Since I wasn’t in the room and since I’m just one American living out here in Flyover Country, I’ll just applaud from my home and hope — although I suspect it’ll be futile — that Democrats and Republicans can come together to help the vast middle class that deserves some reward for all the hard work it has done to bring the country back from the brink.