a liberals view on the middle class

Posted: April 1, 2007 in All, Blogroll, Democrats versus Republicans, politics, rants

I’ve been corresponding with people in a few news groups, sharing my views on what it means to be a liberal. The money issues came up more than anything else.  It’s really weird that people who consider themselves to be conservatives think that most liberals just want things handed to them on a platter, that everyone should have exactly the same, sort of a socialist sort of opinion.  I’ve been trying to  erase that image from their minds, but not having much luck. The point I’m trying to make is that the United States would fall to pieces if it weren’t for the middle class.  The poorer people have earned income credit, the richer people have countless tax write-offs.  I pay 1/3rd of my salary in taxes.  I’ll bet the rich don’t pay that high of a percentage.  To be a liberal, in my opinion in matters of finance, I think the more money you make, the higher percentage of taxes you should be required to pay.  The fairtax would do this to some degree, but the wealthy and the government don’t like this plan. http://www.fairtax.org/    (Gee, I wonder why?) What I’m trying to say is, to be liberal does not mean we think that all should be equal, and everyone deserves the exact same amount of money or resources.  But I do think that the wealthy should be required to do more based on their income.  Why should the middle class be responsible for paying most of everything?

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Comments
  1. proletariat says:

    Hmm. I have a hard time seeing how this would benefit the middle class. It seems the wealthy get more or less a free ride since such a small % of their wealth goes to consumption.

    In contrast a very large % of the middle class income goes to consumption. Remember 24% of your wages are taxable, rent, and everything you buy.

  2. Sunny says:

    And I gather one would say it is fair that the wealthy instead of spending everything they make take the time to invest in companies (the companies are borrowing from them to finance themselves to stay in business so the people can have jobs), and they save some money (banks borrow from them to lend to those who won’t save).

  3. Manymeez says:

    proletariat: I’m not sure if I’m following you or not. I really don’t think that I buy more than the wealthy do. And the items I do buy are less expensive than what wealthy people buy. Do you mind elaborating a little more?

    Sunny, that sounds like a good idea too!

    Thanks for the comments!

  4. proletariat says:

    We can say some taxes are progressive and others regressive. Progressive taxes increase as income and wealth does. So if we use a payroll tax those earning more would pay a larger tax rate.

    The Fair Tax in fact puts a much larger share of what you refer to as the middle class. If we move to a consumption tax system that puts almost all of it on the middle class. For example wages are taxed (through employer at 24%), so is rent, food, and all consumer goods. Think about what you spend money on in a given month, and my guess is most if not all of it would be taxed.

    If we look at taxes paid by the upper class it would be rather minimal. Estate taxes, capital gains, and progressive income taxation will all be gotten rid of. A much smaller – less than 5% – of their income goes to consumption.

    I think its a slick con job. Some see this as an advantage because 24% sounds less but in reality you pay a lot more. You are still paying payroll taxes at 24% but the employee pays it as a sales tax. In addition you buy gas – add 24%, but a stick of gum – add 24%, buy groceries – add 24%, pay rent – add 24%, buy a house – add 24%.

  5. Manymeez says:

    I’m going to have to spend some more time researching what you’ve presented here. The way it was presented to me was totally different than what you have posted here. I’ll get back to ya! Thanks for the comment though.

  6. Retired says:

    Proletariat,

    I have to disagree with your analysis of the Fair Tax. It does not tax wages in any way. Therefore, you are recieving a 24% pay raise with this plan by keeping what you used to pay in taxes. I think you would do well to check out http://www.FairTax.org

  7. proletariat says:

    All depends on how you look at it. While wages per se are not taxed via the employee, wages paid are by the employer. In other words you are the employer’s commodity.

    In either case it is as regressive to the working/ middle class as one can get. It taxes no wealth, no capital, only consumption.

  8. Randy says:

    Do you know 40% of people don’t pay income tax? How can you have a real “dog in the fight” is you aren’t paying.

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