Wednesday, September 28, 2011

Obama's Class Warfare

Recent criticisms of Obama have attacked Obama's new tax plan as 'class warfare'. Obama has recently endorsed implementing a "Buffett rule" that ensures that the rich in America will not pay a lower tax rate than those less well off. While I agree with the essential premise that the rich should pay more in taxes than their fellow, less wealthy citizens, the "Buffett rule" seems a misguided way to address tax reform in such tumultuous economic times. Obama needs a swift economic recovery if he has any hopes for re-election and attacking the rich with significantly higher income tax rates is not the way to go about raising tax revenue. It will only further alienate crucial upper class and upper-middle class support in the coming election. Instead I agree with this Economist article that America needs to focus its tax reform on taxes like the capital gains tax, where there is more room for maneuvering and politicking without isolating critical segments in society. America could also do well to simplify its tax code and eliminate some unnecessary deductions that don't directly affect income levels. Obama needs a critical reassessment of his tax plan because as of now it seems a rehash of typical Democratic policy that will not inspire the electorate come 2012.

No comments: