Saturday, March 7, 2009

Delusional People

A lot of my conservative friends complain about the upcoming Obama "tax increase" (which is, of course, not an increase really since the tax cuts enacted by Bush were set to expire. In fact, this should be dubbed the Bush tax increase since it's not Obama's responsibility to continue Bush's legacy). Let's re-iterate. With respect to taxation, IT IS NOT OBAMA'S RESPONSIBILITY TO CORRECT BUSH'S TAXATION MISTAKE! Obama is merely allowing events to unfold as they would have anyway.

Moving on.

Here's the thing. I don't personally know anyone other than the CEO of my company who makes more than $200,000. Nor do I know any families who make more than $250,000 combined. I think that you would be hard pressed to find anyone who makes that kind of money. 

You know what else?
You aren't ever, ever going to make that kind of money most likely.


Somehow, Americans got it into their head that their all gonna strike it rich and conservatives have gotten it into their heads that tax increases on the top 1/2 of one percent are going to personally hit them square in the pocket book.

In a comment to my fellow blogger John Phipps, I pointed out that when tax rates were higher, there wasn't a problem. And, since tax rates have been lowered, the overall wage rate and affluence of the middle class has been very negatively impacted. Causality? I don't know.

I do know this: the illusion that many middle class people labor under that they will strike it rich is almost always very misplaced.


  1. Im enjoying your writings Eric. While at BYU I started to major in Econ but ended up in POL SCI and was headed for law school (that never happened as I put my life aside for my first husb who was headed to med school) anyway, i used to be a democrat, then conservative, and now they both make me sick. However as far as taxation goes Ive always been in favor of a flat tax but you dont hear it being talked about so much. why? i mean it seems like the only fair way to me. the rich got their by busting their ass or taking chances so why punish them, and the poor usually keep spinning their wheels by their own doings so why give them a hand out. thats why most of us are middle class, because the majority does neither. im all for programs for poor to help themselves but not hand outs or special breaks which seems to be what democrats are always talking about. i know these are general terms but i havent been immersed in this like you have for years but would love your thoughts and perspective if you get a moment

  2. I know many people who make more than 200k, and in fact families (couples) who top the 250 mark. Maybe 20 i could name off hand. I'd bet they know more of the same than I do. Your argument as I read it is- YOU don't know them, so throw it out? YOU persoonally don't aspire to be rich, so remove it as an option? It's very plainly written that way. I may be green in this field, but I know that Capitalism is more than just opportunity to be rich.