Early in America’s current experiment with Democracy, we were warned by Alexis de Toqueville that our seeds of destruction were sewn when the voters realized that they could simply vote themselves benefits from the public treasury. We are getting dangerously close to that. Currently 40% of our voters pay no taxes and by some estimates a President Obama will move that close to 49%.
When we reach this level we risk inflicting a wound on our society that will be difficult to overcome at an election. It is the same wound that Europe is only beginning to recover from.
This is the mortal danger of the economic class war fare that is infecting this campaign. Obama says that he will only increase taxes on those who make over $250,000. There is not near enough revenue from that group to begin to cover the spending he proposes or the tax cuts/ tax credits he promises, much less the mere interest on our record debt.
His remaining choice is to raise the tax on the ‘rich’ ever higher until they leave, or to redefine ‘rich’ down, at first to $150,000 or even $100,000 but eventually to $75,000.
With nearly 50% paying no taxes it will be ever easier to redefine ‘rich’ as anyone making more than you. The public will amazed at who will be considered rich.