"Socialism" Vs. Progressive Taxation.
We are in the midst of a financial crisis that is about to hit the American middle class with the force of a category 5 hurricane, and the GOP and its cronies have been trying to make the "socialist" brand stick to Barack Obama and his fiscal and domestic policy platform. I think that (once again) it's time to get our definitions straight. "Socialism" is "any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods". Progressive taxation obviously doesn't fall within the parameters of the definition. But this is what the extreme Right is referring to when it talks about its opponent's "socialist" policies.
Republicans would have you believe that the core principal of Socialism is income redistribution- "Take from the haves to give to the have nots." Not only is this crudely simplistic, but it is a Cold War-based lie that's been repeated since Ronald Reagan's presidency. Perhaps that's why the GOP is running on an anti-intellectual and anti-academic platform- because careful analysis exposes their argument for what it is. The US has been traditionally referred to as a "Capitalist" country. It is therefore illuminating that the vast majority of American economists (81%) support progressive taxation (SOURCE) and Obama's policy positions (SOURCE). But why should you bother listening to the experts when you have "your own" strong opinions?
What does a study of history tell us? If you are dead-set in changing the definition of the word "socialism" to include progressive taxation, then you have to accept that the USA has been socialist since 1862, when the first progressive income tax was passed in this nation (SOURCE). It is therefore an AMERICAN VALUE that has carried us through the years and helped us become a superpower. If you are against this tax policy, the case can be made that you are ANTI-AMERICAN. Naturally a "free market" idealogue is going to attempt to fight this conclusion using any means necessary. But the reality is that their alternative is a fantasy- "free markets" have never existed anywhere except in theory. It's a grand "utopian" fairy tale that wealthy people (and sycophants) have used to put the masses to sleep.
You often hear the "free market" dictum that “wealth creates wealth”. It’s not that there’s no merit to this argument. That’s why I don’t necessarily support “socialism”. But on the other hand, entrenched wealth creates obstacles to competition and innovation. The ideas that make men wealthy eventually become outdated with the changes in the environment. Yet wealthy men often have little incentive to adapt to those changes, because they risk losing their competitive advantage. They are more motivated to protect their wealth artificially by working to maintain the status quo. They have the resources to set the conditions to attain that end. Progressive taxation works against that stagnation.
Thomas Jefferson said, “"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." I’m not in favor of class warfare or anarchic revolution. I believe in incremental social change. By shifting the tax burden on to the wealthy, you free up the middle class to provide new ideas to adapt to a changing society (and to put their own money behind these ideas)- something that the entrenched wealth of the upper classes has proved itself incapable of. Entrenched wealth stifles innovation and competition the same way ruling classes have in so-called "socialist" nations. Progressive taxation doesn't "punish" achievement. That's a ridiculous notion. It fosters enhanced economic class mobility, which is crucially necessary in encouraging the adaptation necessary over the long run.
Labels: Class Warfare, Economics, Free Market, Joe the Plumber, Middle Class, Political Rant, Progressive, Republicans, Shenanigans, Socialism