I most recently wrote about the myth of the job creator. Basically showing how cutting taxes for the rich does not result in job creation. However, even in the face of counter evidence all of the Republican candidate’s proposed tax plans all involve tax cuts for the wealthy.
As the graph indicates, the Republican’s plan for solving all of America’s problems is clearly to just cut taxes for the rich. In none of their plans do they try to help out the middle class or the lower class. Instead they help those oh-so-important job creators.
Now, what is interesting is any time the Democrats or the President propose a tax increase for the wealthy, like the 2% millionaire surtax to fund the payroll tax cut, the Republicans fire back saying it is class warfare. But doesn’t class warfare cut both ways? By the Republican definition how is cutting taxes in favor of the wealthy as opposed to the middle class not class warfare? Democrats want the wealthy to pay more and they are accused of engaging in class warfare but when Republicans want the middle class to pay more that is just good economic policy. It does not make sense. If Democrats are engaging in class warfare than so are the Republicans. And if I have to pick a side in this war I am going to stick with the middle class. It just makes sense to have the wealthy pay a little bit more in taxes, which will not have an affect on them, than burden the already declining middle class with having to pay more.
The middle class is hurting right now which is why the recovery has been so slow. Regardless of what conservatives think the way out of this recession is not cutting taxes for the rich. Keynesian economics is correct; we need to increase demand and that is done by helping the middle class. Demand is not created by giving rich people more money. Demand is created when the middle class has more disposable income to inject into the economy. So the Republicans need to realize raising taxes on the rich is not the end of world, it is not class warfare and the real way out of this recession is through increasing demand.