Accuracy in Media

Mostly with Democratic votes, the Republican-controlled House of Representatives on Tuesday voted for what the Obama Administration said was “the most progressive income tax code in decades.” It was Karl Marx who called for a “heavy progressive or graduated income tax” system in order to redistribute the wealth and establish a socialist state.

The bill was brought to the floor by Republican House Speaker John Boehner, who voted for it, without a spending cut amendment. He says he will seek “entitlement reform and pro-growth tax reform” sometime later this year.

The vote in favor of passage of the tax increase bill was 257-167, with 85 Republicans joining 172 Democrats in the affirmative. A total of 151 Republicans and 16 Democrats voted against.

The liberal media will scoff at the idea that the House voted for Marxism. But a classic John Chamberlain article in The Freeman notes that Karl Marx and Frederick Engels, in the Communist Manifesto, had advocated a heavy progressive tax as a means of despoiling the “bourgeoisie” and “softening middle class society up for the dictatorship of the proletariat.” Marx understood how class envy and jealousy could serve as the basis for the seizure and maintenance of political power.

Scottish economist Ramsay McCulloch said in 1845: “The moment you abandon . . . the cardinal principle of exacting from all individuals the same proportion of their income or their property, you are at sea without rudder or compass and there is no amount of injustice or folly you may not commit.”

That principle is tax equity. As noted by Chamberlain, “a rich man would pay more taxes than a poor man, naturally. But every dollar of assessed property value, or of income, or of spending, would be taxed in equal amount, at flat percentage rates. Dollars would be treated equally, no matter who owned them, or spent them. Thus the citizens would be accorded the ‘equal protection of the laws’ — and their ‘privileges and immunities’ would be equal, as provided for in the United States Constitution. Any other way of treating taxation was regarded as discriminatory, or as putting penalties on ability, ambition, and success.”

Obama and his administration understand precisely what they have achieved and, more importantly, what they forced 85 House Republicans, including Speaker John Boehner, to accept. An Obama administration “fact sheet” declared, “for the first time in 20 years, Congress will have acted on a bipartisan basis to vote for significant new revenue.” The left-leaning Politico trumpets the news: “GOP anti-tax policy goes over the cliff.”

Not only do we now have “the most progressive income tax code in decades,” but the bill that is now law does not include an extension of the payroll tax “holiday.”  This means about $1,000 a year for an average worker.

In a story headlined, “Bigger Tax Bite for Most Under Fiscal Pact,” the New York Times  confirms that about 77 percent of households would pay a larger share of income to the federal government this year, and that the legislation is expected to reduce economic growth by as much as 1 percent in the first quarter of 2013.

Zubi Diamond, author of Wizards of Wall Street, tells AIM, “If you are unemployed, or behind in your mortgage, or struggling to pay your bills, or your home is underwater, this is not going to change your situation for the better. If anything, it will make it worse.”

Diamond, a successful businessman and stock market investor and trader, came from Africa to the U.S. to seek the American dream. He says Obama’s attacks on the capitalist system are succeeding because people do not realize that Obama’s allies in the hedge fund industry were behind the economic collapse in 2008 that led to his election and that they continue to rig and “loot” the system.

“The perceived unfairness or imperfection associated with capitalism in America today is because of the parasitic anti-capitalist hedge fund short sellers on Wall Street, who are members of the Managed Funds Association,” he argues. “They hide in the body of our capitalist society, and suck the life and liquidity out of our economy by fraud and manipulation.”

Diamond predicts a “double dip” recession that he sees as part of a strategy “to cut America down to size, in order to achieve a global balance of power” that will diminish America’s economic and military clout.

Some experts, however, think that more printing of money by the Federal Reserve will keep the appearance of an economic recovery going.

Christopher T. Mahoney, who retired from Moody’s in 2007 after 30 years on Wall Street, expects to see the Dow around 15,000 by next Christmas. He says the Fed’s balance sheet should grow by $1 trillion next year, a 36% increase over where it is now.

In his “Capitalism and Freedom” blog, he says, “The money supply (M2) has grown by almost $3 trillion since the crash, for a total growth of 40%. Since the crash, nominal GDP has grown from $14 trillion to $16 trillion, an increase of 14%. The Fed’s plan is that by growing the monetary base by about a third in 2013, nominal growth will accelerate to a level that would allow unemployment to decline from its current 7.8% to a targeted 6.5%.”

For his part, Obama said the legislation which passed the Senate and then the House “enshrines, I think, a principle into law that will remain in place as long as I am President: The deficit needs to be reduced in a way that’s balanced. Everyone pays their fair share. Everyone does their part. That’s how our economy works best. That’s how we grow.”

Commonly accepted definitions of “enshrine” include “to enclose in or as if in a shrine” and “to cherish as sacred.”

Neil Munro of the conservative Daily Caller wrote an article interpreting these remarks to mean that Obama will demand another tax increase for 2013. But Obama did not say how much more “heavy” or “graduated” the progressive income tax should be.

In France, where they have an explicitly socialist government, a proposed 75 percent income tax rate on the rich was struck down as “a breach of equality of taxes” and ruled to be unconstitutional.



Comments

  • Boehner you are truly a piece of s$#t. You need to gol away..

  • When toughness is required, 85 Repbulicans lose their courage.

  • Kahlil

    If most Americans are mislead by a socialist power-house media, what can any Republican do to stem the tide of American decline?

    Nothing, we are left at the helm of the Titanic sinking into the abyss.

    This nation is slated for down-sizing.

    Can you imagine what America will look like in 10 years?

    The Democrats plan to have a poor and dependent people living on government hand-outs.

    What this means for the rest of the world is a lot more frightening.

    Nations that will wield economic clout will diminish their individual liberties for there will be no Free America to lead by example.

    A nation once free, now enslaved by Socialists fanatics who run our schools, universities, media, entertainment and now our industries.

    This is the precursor to Global Government. Ensuing hard economic times around the world, higher food prices, higher energy costs and continuous high unemployment. Of course, all these maladies are engineered to achieve their sinister purpose.

    Here is something to ponder. Man plans, God executes.
    Who is really in Charge? God or Man?

  • stevor

    sure, first things first with HOPES that the lemmings will forget his “plans” for later

  • wbramh

    “The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”
    – Adam Smith, alleged “Father of Capitalism” and secret Marxist
    From “The Wealth of Nations,” (Book 5, Chapter 2)

    We can’t trust anyone.

  • Austerlitz

    ‘Progressive’ things are good, it’s a positive word. Why you insist on pretending it’s negative is beyond me. Also, the fact that both Marx and Obama used the same word doesn’t mean obama’s a Marxist. I’m sure both Reagan and Hitler shared many words, but it doesn’t mean Reagan was a Nazi

  • Wildkatzaz

    Long live the Proletariat! Now if Boehner can just cave on gun-control as well, we can all live like safe, equal Komrads whose only fear is that midnight knock on our front door and the long train ride North.

  • Wildkatzaz

    We all know what “future spending cut” means: ain’t gonna happen. Now let’s just remove the debt ceiling altogether and become the first 4th-world country.

  • Wildkatzaz

    We have completely let down the Greatest Generation. Our legacy will be “the weakest generation” – the ones who finally let the bad guys win and gave our freedom away.

  • Wildkatzaz

    The amazing this is how impressed liberals are by positive words. How do the words “master race” sound to you? Pretty positive, no?

  • Wildkatzaz

    I think the key words there are their “respective abilities.” 47% of this country’s population is essentially living off the rest. Do they truly have no ability to contribute?

  • Wally Hayman

    Actually, Adam Smith qualified the statement in his very next sentence and to mean no more or no less than the initial statement implied. Smith kept his statement clear and straightforward – a scale based on the “revenue they respectively enjoy.”

    That would obviously include everyone and doesn’t attempt to accomplish the impossible which would be to determine the extent of an individuals motivations and talents. Likewise, it also encourages people to choose any number of noble and necessary professions suitable to their personal strengths but ones that may never bring them riches; rather, professions that more typically leave them one lay-off away from some form of state welfare. Jobs like teachers, firemen, policemen, EMTs, coal miners, soldiers, farm workers,white-collar defense industry personnel – or those well-trained but under-paid, under-staffed and job-insecure government inspectors whose one critical task is to keep salmonella off our dinner plates.

    No doubt there are slugs among those 47% that Mr. Romney was good enough to point to, but I’m sure most reasonable people (including Mssrs Romney and Ryan) would agree that the overwhelming majority of those 47% of Americans are not lazy. Nor are all millionaire and billionaire among the 47% who voted for Mr. Romney all gaming government hand-out system by unfairly claiming government subsidies and write-offs while making record profits, hiding their net profits behind foreign shells and stashing their incomes in foreign banks.

    To deny the $33 billion spent on welfare because some are cheaters would be like taking away the $500 billion in our military budget because the Pentagon discovered over 100 defense contractors outright stealing from the public. The same welfare gaming but larceny is on different scales – and for some thieves, prison life does not include tennis courts, golf courses and weekend furloughs.

  • Austerlitz

    It depends in what context the words are used, as always. Seemingly the only link between Obama and Marxism is the use of the word “progressive,” which in this context means ‘modern’. All Obama’s saying is that that we’ve got a modern tax code. Doesn’t sound that controversial to me.

  • Kahlil

    Socialist are Progressives for brain-washed folks like you and the multitude of your kind, but does that make it true?
    For truth sake, go and spend a few years of your life in Cuba, Venezuela or North Korea. Make sure you change your citizenship and take all your savings with you, then come back to us with your idealism and articulate your socialism to a willing media.
    I have lived most of my life in two socialist countries and lived like the common people, not a tourist.

    It is no cup of tea. Get real. the proof of the pudding is in the eating. Stop indoctrinating these gullible Americans.

    The Socialist ruling class live like the wealthy in Capitalist countries,It is all a game and supporters like you will make it happen in America.
    Obama is a strong Socialist and undeniably will drive this nation to the brink of poverty, that is his administration policy to weaken and undermine America ability to defend and protect her constitution.He is Change, big time.
    Let him set an example by living like ordinary Americans who cannot pay their bills and are struggling to keep and find a job. The percentage of unemployed is not accurately reflected by the numbers coming out of the Labor Department.Take a survey of your family and friends and quantify the number of them who have permanent jobs and are still seeking work.

    The sad thing is most of the unemployed do not see the link between the president economic policy and their disastrous and perilous financial situation. Even if we taxed the wealthy at 90 percent of their income and took all their money away, we will still be unable to balance our budget.
    It is about jobs, brother not fancy and romantic idealism, modern tax codes and overcoming the racial divide.

    Obama is another Chavez, they have so much in common.
    They like they poor, yet poverty expands and balloons under their guidance.

    Eventually, this nation will run out of money and Obama knows that the crap will hit the fan after he finishes his second term. That does not sound Progressive or does it?

  • Austerlitz

    When did I say I was a socialist? All I said was that Obama wasn’t. Once again, just because two people use the same word, it doesn’t mean they believe inthe same thing

    Also, if (and I strongly emphasise the ‘if”) Obama is a socialist, then, frankly, he’s a pretty rubbish one. He’s been in power for four years, and he hasn’t really succeeded in enacting any real socialist policies.

    For what it’s worth, I disagree with much of what Obama does, and I agree that Socialism doesn’t work, but this kind of sensationalist scare-mongering does nothing except make the right look stupid. Most Americans aren’t stupid, and they know that Obama isn’t a Marxist. Just argue about real issues, don’t make things up.

  • Ishan Sharma

    *sigh*. Obama’s less liberal than Richard Nixon. He’s a center-left president, and Hillary Clinton will be a center-right president.

    Obama will be remembered as a champion of the American people, one who successfully passed left-leaning legislature through a conservative congress.

    I just hope that liberalism will become a political movement once more. We are already trembling down on the boot of corporations. Sure Obama was better than Mr. Iran Contra (Reagan), who illegally gave Iran military hardware and spent it all on anti-democratic terrorists. But we need a new FDR or at least another LBJ without the war to fix this great nation of ours. We need to bring back the spirit of the great liberals Lincoln and the two Roosevelts. We must bring the Republicans back to the liberalism it was founded upon. Otherwise, the conservatives may win.

  • Ishan Sharma

    Idiot. In Ronald Reagan’s presidency, our deficit skyrocketed to unbearable limits and this only increased with the conservative Bush presidents and Clinton. After the nightmare of them, thankfully we now have a more moderate president who has repealed the neo-Nazi laws of Reagan and the two Bushes. Already, we have recovered from the recession. Obama repealed ultrawealthy tax benefits and is restoring the American Way. Our economy is booming. We may have a Nazi-controlled Congress and media, but slowly, we are becoming more liberal and free.

    Long live America.