Monday, September 19, 2011

Math

The US is a very low tax* industrial country (26.9% of GDP)that spends like a medium low tax industrial country (33%). President Obama wants to raise taxes on the richest Americans - so naturally, some of the richest Americans, beneficiaries of repeated tax cuts and an exploding share of the nations wealth, and their minions scream "class warfare." It is, of course, but it's class warfare they started and have been winning for thirty years. Obama:

"During this past decade, profligate spending in Washington, tax cuts into multi-millionaires and billionaires, and two wars have turned a record surplus into a massive deficit," Obama said. "If we don't act, the debt will eventually crowd out everything else, eventually affecting us from investing in things like education and Medicaid. We need to cut what we can't afford to pay for things we need."

So class warfare it is - but more importantly, it's just math.

*US 26%, Austria 43%, Belgium 46%, Japan 28%, Sweden 48%, Afganistan 6.4%