Now let's address the ignorance of his rant. Progressive taxation is a tradition of Western economics that dates back considerably further than Marx and the Communist manifesto, with all due respect to the wingnuts who seem to be writing McCain's speeches. He admits that he has neglected his economic studies, so perhaps he isn't aware that Adam Smith, revered philosopher of market capitalism, advocated tax fairness as far back as 1776, the fateful year when he published the first edition of "The Wealth of Nations."
Although there was then no income tax, Smith's principled judgment on the justice of higher taxes on those who could pay more, enunciated on several occasions, could not be clearer.
He favored property taxes and luxury taxes because they would fall most heavily on the wealthy. He would have levied a sizeable tax on all seven of the McCain homes plus an additional chop at all of Cindy McCain's credit card binges.
In "Wealth of Nations," Smith wrote: "The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state."
Few legislators are more familiar than McCain, in his maverick incarnation, with the enormous fortunes raked in by oilmen, defense contractors, bond holders and the whole host of modern capitalists under the protection of the American state. The notion that those fortunes, often gotten in a parody of the free market, should be taxed at the same rate as the earnings of a plumber would strike Smith as monumentally unjust and an attack on the moral foundations of society.
Finally, let's discuss the other bit of demagoguery in McCain's most recent speeches, when he complains about the "redistribution of wealth" and equates an income tax rebate for working people with "welfare." Leaving aside the racial subtext of those remarks, it is hard to say whether they display ignorance, dishonesty or both. The American tax system, like all other taxation in modern nations, has always redistributed wealth. Sometimes it sends streams of money upward, from low-income taxpayers into the pockets of corporate executives; at other times it sends those streams downward, to assist the very poor.
But to cast socialist aspersions on a tax refund to working families whose incomes are too low to pay income taxes is to paint a big pink stripe onto McCain's supposed idol, Ronald Reagan. In 1986, Reagan signed legislation greatly increasing the Earned Income Tax Credit, a credit for low-income workers that reduces the impact of payroll taxes in order to boost take-home pay above poverty levels. When the credit is more than the amount of federal income taxes owed by an individual, that person receives a tax "refund." Reagan praised the earned income tax credit as the best "anti-poverty" and "pro-family" legislation ever enacted by Congress.
It must be troubling for Republicans to learn that according to McCain, the Gipper was a socialist, too.
© Creators Syndicate
Comments? Send a letter to the editor.
Albion Monitor October
23, 2008 (http://www.albionmonitor.com)
All Rights Reserved.
Contact email@example.com for permission to use in any format.