After almost three years in office and gradual rightward drifting on the part of President Barack Obama, election season is here again. That means we will once again see President Obama Liberal.
For the first time in years, President Obama proposed more heavily taxing the richest Americans, who hold the majority of America’s wealth. The top 10 percent of American asset-holders possess approximately 80 percent of America’s assets. That leaves the remaining 20 percent to be divided among the rest of us, while the wealth is still concentrated at the top of that set.
President Obama has proposed the “Buffett Tax,” an income tax increase for those making more than $1 million a year. The tax is named after multi-billionaire Warren Buffett, who recently spoke out against how little in taxes the rich pay. Until now, the closest President Obama has gotten to a tax increase on the rich is a compromise allowing portions of the Bush Administration tax cuts to expire. Tax rates are still lower than they were under President Bill Clinton … or President Ronald Reagan. Republicans immediately began crying “class warfare.”
Apparently class warfare is what happens when the working class fights back. Years of shrinking taxes for the richest Americans have not been class warfare. The fact that incomes for the top earners have increased for decades, while middle-class incomes (adjusted for inflation) have stagnated is not class warfare. But when working Americans ask our richest citizens to carry their share of the burden, to give back some of what our society has given them, that is class warfare.
Republican politicians pointed out that the top income earners pay 40 percent of America’s federal income tax. They don’t mention that income tax rates have consistently fallen for decades. They don’t mention that this represents the rich paying a much smaller percentage of their own incomes to taxes than the middle and lower classes.
And they don’t mention how much more the poor pay in flat taxes. Sales taxes, toll roads and gas taxes are all examples of flat or regressive taxes. Those with lower incomes pay a relatively far higher percentage of their income to these taxes than the rich do. The income tax is a progressive tax: Hypothetically, the rich pay a greater percentage of their income to income taxes than the poor do. After all, they can afford to pay more. Increasing taxes for the poor means they have less money for food, rent and medicine.
Progressive taxes have been politically unpopular. Flat taxes seem more fair, as everyone pays the same flat fee. But looking past the surface reveals that a flat tax is inherently unfair, as the poor are forced to pay a far higher percentage than the rich.
Conservatives have not only opposed raising taxes but also allowing the government to collect what it is owed. In 2009 and 2010, oil giant Exxon Mobil paid no U.S. taxes. In fact, it received a subsidy from the government. Attempts to close tax loopholes like this result in more cries of “class warfare,” and dreadful prophecies that all our companies will outsource their jobs overseas. We allow the rich to take advantage of us, and we are expected to be grateful for the opportunity.
It’s time to demand progressive taxation, demand that those who can afford to pay the taxes give back to the country that has given them so much. President Obama’s proposal is a small step, and it certainly isn’t class warfare. But maybe it’s time we had some.