How to kill a democracy

September 25, 2009

The Tax Foundation does the math:

New reports from the Tax Foundation show that President Obama’s policy proposals will increase the financial dependence of middle-income Americans on the federal government.

“Attempts to put ‘price tags’ on health care and cap-and-trade proposals vary among government agencies and think tanks,” said Tax Foundation President Scott Hodge, “but one vital question has been left unanswered: Counting all federal taxes and spending, how would these policies affect American families’ financial ties to the government? The foundation’s new ‘fiscal incidence model’ answers that question.”

“Currently the bottom 60 percent of the income spectrum receives more in federal spending than they pay in federal taxes,” said Hodge. “By 2012, if President Obama’s proposals on taxes, health care and climate change become law, the bottom 70 percent of American families will, as a group, be receiving more in federal spending than they pay in federal tax.”

Even if none of Obama’s policies becomes law, the extent of current income redistribution is remarkable: The top-earning 40 percent of families will transfer $826 billion to the bottom 60 percent in 2012. If Obama’s policies become law, the federal government will redistribute nearly $1 trillion from the top-earning 30 percent of families to the bottom 70 percent (those earning up to $109,000).

Me: I don’t think this is either a) sustainable, b) good for future economic policy or c) good for American democracy

2 comments

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> Me: I don’t think this is either a) sustainable, b) good for future economic policy or c) good for American democracy

Why not?

Posted by Niko | Report as abusive

probably because it
a)will eventually eat up the 61st %’s wealth so they rely on the government, then the 62nd, then the 63rd…
b)removes incentive to be in the top 40%, and encourages people to stay poor
c)people who need the government to survive would have a hard time voting against the dominant party for fear of losing their entitlements