Obama on Reagan: a ‘wild-eyed, socialist, tax-hiking class warrior’
Some years ago, one of my predecessors traveled across the country pushing for the same concept. He gave a speech where he talked about a letter he had received from a wealthy executive who paid lower tax rates than his secretary, and wanted to come to Washington and tell Congress why that was wrong. So this president gave another speech where he said it was "crazy"—that's a quote—that certain tax loopholes make it possible for multimillionaires to pay nothing, while a bus driver was paying 10 percent of his salary. That wild-eyed, socialist, tax-hiking class warrior was Ronald Reagan.
He thought that, in America, the wealthiest should pay their fair share, and he said so. I know that position might disqualify him from the Republican primaries these days, but what Ronald Reagan was calling for then is the same thing that we're calling for now: a return to basic fairness and responsibility; everybody doing their part. And if it will help convince folks in Congress to make the right choice, we could call it the Reagan Rule instead of the Buffett Rule.Yet Reagan also championed the very same "trickle-down" economics that Obama has roundly denounced—the idea that tax cuts for the wealthy lead to investment that generates growth and thereby jobs. Obama on Tuesday described this economic policy in harsh terms, saying its supporters "don't seem to understand how it is that America got built."
"In this country, prosperity has never trickled down from the wealthy
few," he said. "Prosperity has always come from the bottom up, from a
strong and growing middle class."
Obama lumped trickle-down economics among "old broken-down theories" that he blamed for the 2008 global economic meltdown.
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Though I too understand the fairness issue regarding taxes I think a flat tax would work better or a universal sales tax that affects everyone is a better solution. Even though Obama wants fairness I don't think "The Buffet Rule" would accomplish what he wants in actuality. First, it would solve only 1/2 of 1% of the nations financial needs in reality. 2nd it would tend to drive away investments foreign and domestic from the stock market as investors didn't want to be hit with an extra 15% capital gains tax from around the world. So, on both counts this isn't very well thought out. But it will play well to the people who don't understand how worldwide investors actually think and invest worldwide.
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