In another move of politicians acting in the best interest of their constituents, Democrats are announcing that they will allow the tax cuts that were first introduced under Bush to lapse and effectively raise taxes on the middle class. This will only happen if the republicans refuse to raise taxes on the wealthy. That makes sense.
We need to increase taxes to pay off this debt that is threatening to bankrupt the US so let’s hurt the largest tax base with additional taxes. Even with higher taxes on the wealthy, taxes will have to be raised for all people and services will need to be cut for those who are dependent upon government assistance to live. This is a fact that we all need to embrace now and start dealing with it. Just rip off the band aid and start dealing with the issue.
I was watching President Obama this morning on CBS Morning News and he made the comment that he would like to see the middle class grow in numbers. Who wouldn’t, but that will not happen. One of the issues with putting a label on a segment of society is that there have to be criteria established for what constitutes that label. If people who are poor begin making enough money to put them into the middle class bracket, the middle class bracket will technically no longer be a correct label. This is because they are no longer in the middle.
Of course if the middle class group grows, then prices will also increase as more people are now able to compete for the same resources. Prices will increase which means that the people in the middle class are now purchasing less than before, so that really has not benefitted anyone either.
For the more people to move into the middle class, money has to come from somewhere. I am not sure where this money will come from except from the wealthy. There is too much of a gap between the wealthy and the rest of the population, so in order to raise the others up one must take from the ones who have the money. Now this money will be taken by the government in the form of additional taxes, but how does it get into the hands of the poor to move them to middle class? Is the government going to create jobs and pay these poor people or will there just be an increase in benefits and services provided to them without any effort required on their behalf?
The only way to really level out the groups is a return to New Deal type programs. You have to put those who are out of work to work and then provide them with money to live on. We could just keep giving out funds without requiring any action, but we should all be smart enough to know that does not work. When you give people everything they need to live but require nothing from them, they take it for granted and do not know how to budget or prioritize their spending. Sounds like what is happening now doesn’t it? The mortgage crisis helped push us over the edge and banks need to take some responsibility for being greedy, but what about all the people who were buying houses that they knew they could not afford? When are people going to be held accountable for their own actions?
The lie that we want to believe is that we can all achieve the American dream. That is simply not possible. There will always be people who have more than others and those who have less. This is true for every type of government so it is not just a flaw of capitalism. Humans by nature want what they see so there will be those who will take steps to acquire it. Have you ever wondered why government officials in communist and socialist countries always had more than those who were supposed to be equal with everyone else?